Disappointing Start to 2017 Does Not Alter Our Long-Term Outlook for Hormel; Shares Fairly Valued
Despite soft first-quarter earnings, we do not plan to make a large change to our $33 per share valuation for narrow-moat Hormel. The firm reported a 1% sales dip alongside a 10-basis-point operating margin contraction (to 15.6%) against our full-year forecast of a 2% decline and around 85 basis points of expansion. Hormel cut 2017 adjusted diluted EPS guidance by $0.03 to $1.65-$1.71. Our $1.70 target was near the low end of the original range, and our more conservative take along with a time v...Hormel Foods is primarily engaged in the production of meat and food products and the marketing of those products throughout the United States and internationally. The company's segments are: Grocery Products, which consists of the processing, marketing, and sale of shelf-stable food products; Refrigerated Foods, which consists of the processing, marketing, and sale of branded and unbranded pork, beef, chicken, and turkey products; Jennie-O Turkey Store, which consists of the processing, marketing, and sale of branded and unbranded turkey products; and International and Other, which includes Hormel Foods International Corporation that manufactures, markets, and sells the company's products internationally.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.