Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%.
Since the start of 2023, the big story on Wall Street has been technology. The boring consumer staples sector has lagged far behind both the tech sector and the broader S&P 500 index (^GSPC 2.13%) over the past three to five years.
Hormel Foods Corporation (NYSE:HRL ) Q1 2025 Earnings Conference Call February 27, 2025 9:30 AM ET Company Participants Jess Blomberg - Director of Investor Relations Jim Snee - President and Chief Executive Officer Jacinth Smiley - Executive Vice President and Chief Financial Officer John Ghingo - Executive Vice President, Retail Segment Conference Call Participants Peter Galbo - Bank of America Ken Goldman - JPMorgan Heather Jones - Heather Jones Research Rupesh Parikh - Oppenheimer Ben Thurber - Barclays Thomas Palmer - Citi Michael Lavery - Piper Sandler Pooran Sharma - Stephens Max Gumport - BNP Operator Good morning, ladies and gentlemen, and welcome to the Hormel's Foods Corporation First Quarter Earnings Conference Call. [Operator Instructions] This call is being recorded on Thursday, February 27, 2025.
HRL's first-quarter fiscal 2025 results reflect a year-over-year decline in net sales and earnings. Volumes fall 4.2%.
Although the revenue and EPS for Hormel (HRL) give a sense of how its business performed in the quarter ended January 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Hormel Foods (HRL) came out with quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.41 per share a year ago.
Skippy peanut butter maker Hormel Foods on Thursday missed first-quarter profit estimates, hurt by higher input costs and the persistent effects of a supply issue at its Planters brand's distribution facility from last year.
The company said it continues to “recover from the snack nuts supply disruption” that impacted Planters nuts.
HRL's Q1 results are likely to show negative effects from the production disruption at its Suffolk facility, along with rising advertising expenses.
Evaluate the expected performance of Hormel (HRL) for the quarter ended January 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
Hormel (HRL) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
I am upgrading Hormel Foods from a sell to a hold after a 35% decline over 27 months, despite ongoing market challenges. Hormel's dividend yield has climbed above 4%, supported by sufficient free cash flow, though valuation remains unappealing with modest EPS growth expected. Key risks include volatility in turkey and pork markets, geopolitical risks, and ongoing issues with the Planters brand, despite increased advertising investments.