=Hormel Foods (HRL) reported earnings on Thur 24 August 2017 (b/o)

Hormel Foods misses by $0.03, misses on revs; lowers FY17 EPS below consensus

• Reports Q3 (Jul) earnings of $0.34 per share, $0.03 worse than the Capital IQ Consensus of $0.37; revenues fell 4.1% year/year to $2.21 bln vs the $2.24 bln Capital IQ Consensus.
• Co issues lowered guidance for FY17, sees EPS of $1.54-1.58 from $1.65-1.71 vs. $1.66 Capital IQ Consensus Estimate.
• Volume down 9 percent; Non-GAAP adjusted volume down 1 percent. Refrigerated Foods operating profit up 15 percent; volume down 16 percent; Non-GAAP adjusted volume down 1 percent; sales down 6 percent; Non-GAAP adjusted sales up 5 percent."We generated record pre-tax earnings this quarter even as we faced record-high input costs for two of our primary raw materials, pork bellies and beef trim...Nevertheless the results did not meet our expectations. Our team is working to mitigate the effects of volatile commodity markets through increased pricing, strategic promotional activity, and our on-going innovation efforts."
• "While we have communicated price increases in many categories, the increases will not be fully effective until late in the fourth quarter. Jennie-O Turkey Store continues to be adversely affected by unfavorable market conditions, as the industry has not returned to normalized turkey production levels. For these reasons, we are lowering our full year guidance to $1.54 - $1.58 per share from the low end of $1.65 to $1.71 per share. In the face of a challenging year, we are focused on our strategic initiatives and are committed to maintaining a long-term perspective on our decisions."