Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Hormel Foods despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Hormel Foods is expected to report quarterly earnings of $0.35 per share, reflecting a year-over-year decrease of 7.9%, while revenues are projected to be $2.9 billion, an increase of 0.6% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly reassessed their initial estimates [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Hormel is lower than the consensus estimate, resulting in an Earnings ESP of -4.35%, suggesting a bearish outlook from analysts [10]. Historical Performance - In the last reported quarter, Hormel was expected to post earnings of $0.37 per share but delivered $0.35, resulting in a surprise of -5.41%. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13]. Stock Ranking - Hormel currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [11]. Market Reaction - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [14]. Investment Considerations - While Hormel does not appear to be a compelling earnings-beat candidate, investors should consider additional factors before making investment decisions [16].
Earnings Preview: Hormel Foods (HRL) Q2 Earnings Expected to Decline