Hormel Foods lowers expectations for 2013
Hormel Foods Corp. has lowered its earnings outlook for 2013, citing higher costs and softer sales in its refrigerated foods division, and lower-than-expected results in its pork operations.
The Austin-based meatpacker on Tuesday lowered its full year guidance range for fiscal 2013 from $1.93-$2.03 per share to $1.88-$1.96 per share. After the announcement, the company’s stock fell to $38.81 per share at the opening bell, down $1.81 from its Monday close of $40.65.
“We remain very bullish about our future earnings potential,” said Hormel CEO and President Jeff Ettinger.
Ettinger said the company will provide more details on the outlook during Hormel’s Investor Day on June 26.
Hormel finished the second quarter of 2013 in May with a 2 percent drop in net income, but did not adjust its guidance then. Revenue rose 7 percent to $2.15 billion from $2.01 billion, but fell short of the $2.19 billion that Wall Street expected at the time. The company blamed higher grain costs, weaker turkey prices and a one-time cost associated with acquiring Skippy peanut butter for its drop in income.