Hormel Foods Corp

HRL: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$96.00	Tmnct	Xdlgmjdcs

Hormel Earnings: Q2 Results Show Signs of Quick Turnaround, but Shares Look Fairly Valued

Kristoffer Inton

Jun 1, 2023

Following Hormel's weak first-quarter results, second-quarter earnings looked pretty good. Sequentially, sales were roughly flat, volume was up about 4% and gross margin remained steady at 16.5%, as management quickly addressed the issues that plagued the start of its fiscal 2023. This included reducing bloated inventory, rightsizing manufacturing to demand, and stabilizing Planters. We don't anticipate a change to our $37.50 fair value estimate for narrow-moat Hormel, but shares look fairly valued.

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