Hormel Foods Corp (NYSE:HRL) shares fell after the branded food firm’s quarterly sales took a hit from lower prices and a production disruption at its Virginia facility.
For the fiscal third quarter which ended on July 28, 2024, the maker of Skippy peanut butter, Wholly guacamole and SPAM lunchmeat reported revenue of $2.9 billion, missing Street estimates by 2%.
US retail sales were down 7% and profit was down 15% on pricing declines for whole turkeys and lower sales of its Planters-branded snack nuts due to disruptions at its Suffolk, Virginia facility.
Meanwhile, adjusted earnings per share of $0.37 beat estimates of $0.36.
For the full year, Hormel Foods lowered its sales forecast to between $11.8 billion and $12.1 billion from its earlier guidance range of $12.2 billion to $12.5 billion
It also narrowed its adjusted EPS range to $1.57 to $1.63 from its earlier guidance of $1.55 to $1.65.
The production disruptions in Virginia are expected to have a $0.06 per share impact. The company is also assessing the financial impact of storm damage at its Papillion, Nebraska, facility.
Shares of Hormel Foods were down 7.6% at about $31 late morning on Wednesday.