Hormel Foods Corp. (HRL) on Thursday reported a 20 percent decline in profit for the first quarter from last year, when results were aided by a benefit related to the U.S. tax reform. However, earnings per share for the quarter matched analysts’ expectations, while revenues missed their estimates. Looking ahead, the branded food company reiterated its financial outlook for fiscal 2019.
First-quarter net earnings attributable to the Austin, Minnesota-based company declined to $241.43 million or $0.44 per share from $303.11 million or $0.56 per share in the year-ago period.
On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.44 per share for the quarter. Analysts’ estimates typically exclude special items.
Net sales for the quarter grew 1.2 percent to $2.36 billion from $2.33 billion in the prior year. Wall Street expected revenues of $2.39 billion for the quarter.
“We had a solid quarter with sales growth from Refrigerated Foods, Grocery Products and International. Three of our four segments generated earnings growth, which keeps us on track to deliver our full-year guidance,” said Jim Snee, chairman of the board, president and chief executive officer of Hormel Foods.
Refrigerated Foods net sales for the quarter rose 1.9 percent to $1.28 billion, while Grocery Products net sales increased 0.5 percent to $606.83 million and International & Other segment net sales grew 2.1 percent to $153.55 million. Jennie-O-Turkey Store net sales declined 0.5 percent to $321.23 million.
Looking ahead to fiscal 2019, Hormel Foods reaffirmed its outlook for earnings in a range of $1.77 to $1.91 per share, and net sales in a range of $9.70 billion to $10.20 billion.
The Street expects the company to report earnings of $1.83 per share for the year on revenues of $9.82 billion.