=Hormel Foods (HRL) reported earnings on Thur 23 Feb 17 (b/o)

Hormel Foods misses by $0.01, reports revs in-line; lowers FY17 EPS below consensus :

• Reports Q1 (Jan) earnings of $0.44 per share, $0.01 worse than the Capital IQ Consensus of $0.45; revenues fell 0.6% year/year to $2.28 bln vs the $2.28 bln Capital IQ Consensus. 
• Volume down 2%; Non-GAAP adjusted volume up 5%
  • Refrigerated Foods operating profit up 4%; volume down 3%; Non-GAAP1 adjusted volume flat; sales down 3%; Non-GAAP adjusted sales down 1% International & Other operating profit up 5%; volume down 1%; sales down 2% Grocery Products operating profit up 1%; volume up 4%; Non-GAAP adjusted volume up 2%; sales up 7%; Non-GAAP adjusted sales up 3% Specialty Foods operating profit flat; volume down 30%; Non-GAAP adjusted volume up 12%; sales down 19%; Non-GAAP adjusted sales up 10% Jennie-O Turkey Store operating profit down 25%; volume up 22%; sales up 13%
• Co issues downside guidance for FY17, lowers EPS to $1.65-1.71 from $1.68-1.74, excluding non-recurring items, vs. $1.71 Capital IQ Consensus due to challenging market conditions in the turkey industry.
• "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." 

Hormel Foods acquires Cidade do Sol for $104 mln
The co announced it has acquired Cidade do Sol, a growing, branded, value-added meats company in Brazil. The company offers more than 70 products in 15 categories including authentic meats such as mortadella, sausage and salami for Brazilian retail and foodservice markets under the popular Ceratti brand.