Hormel Foods Corp (NYSE:HRL) early Thursday [Feb 23, 2017 | 7:14am] posted mixed fiscal first quarter earnings results and cut its full-year outlook, citing challenging conditions in the turkey market.

Written by StockNews.com

The Austin, MN-based meat and food products producer reported Q1 EPS of $0.44, which was $0.01 worse than the Wall Street consensus estimate of $0.45.

Revenues fell 0.6% from last year to $2.28 billion, matching analysts’ view for $2.28 billion.

Hormel noted that overall volume was down 2% in the latest period, but Non-GAAP adjusted volume was up 5%.

In terms of its various product segments, HRL said its Refrigerated Foods operating profit was up 4% on 3% lower volumes. Meanwhile, International & Other operating profit gained 5% despite 1% lower volumes, and Grocery Products profit rose 1% on 4% higher volumes. Specialty Foods operating profits were flat with volumes plunging 30%. Finally, Jennie-O Turkey Store operating profit plummeted 25% despite 22% higher volumes.

Looking ahead, HRL forecast worse than expected 2017 earnings, slashing its expected EPS range to $1.65-1.71 from a prior $1.68-1.74. Analysts are currently looking for $1.71 per share for the year.

Hormel blamed the weak outlook on challenging market conditions in the turkey industry. The company commented via press release:

“The balanced model we have intentionally built in our business will allow us to overcome the challenges at Jennie-O Turkey Store. I remain confident in our team’s ability to deliver sales and earnings growth by supporting our brands, innovating, and making strategic investments.”

...Year-to-date, HRL had gained 7.67% prior to today’s report, versus a 5.70% rise in the benchmark S&P 500 index during the same period.

HRL currently has a StockNews.com POWR Rating of B (Buy), and is ranked #23 of 62 stocks in the Food Makers category.