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Feb. 20, 2020, 7:00 a.m. EST

Hormel Foods tops sales estimates, agrees to acquire Sadler's Smokehouse

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By Ciara Linnane

Hormel Foods Corp. /zigman2/quotes/209170265/composite HRL +1.98% said Thursday it had net income of $242.9 million, or 45 cents a share, in its fiscal first quarter to Jan. 26, barely changed from $242.4 million, or 44 cents a share, in the year-earlier period. The owner of brands including Jennie-O-Turkey, Spam and Skippy said sales rose to $2.384 billion from $2.360 billion. The FactSet consensus was for EPS of 45 cents and sales of $2.370 billion. The company said it has reached an agreement to acquire Sadler's Smokehouse, a pit-smoked meats company based in Henderson, Texas that has been a longtime supplier. Hormel paid $270 million for the company with the deal expected to be neutral to slightly negative to fiscal 2020 earnings. The company reaffirmed its fiscal 2020 guidance and expects EPS to range from $1.69 to $1.83, compared with a FactSet consensus of $1.76. "Our International team continues to manage through African swine fever, tariffs and the uncertainty caused by the recent outbreak of coronavirus in China," Chief Executive Jim Snee said in a statement. "We have started to see a negative impact on our business in China from the coronavirus outbreak, but we are not yet able to forecast the impact for the remainder of the year. Shares were flat premarket but have gained 12% in the last 12 months, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.48% has gained 22%.

/zigman2/quotes/209170265/composite
US : U.S.: NYSE
$ 48.83
+0.95 +1.98%
Volume: 3.20M
May 29, 2020 4:00p
P/E Ratio
28.68
Dividend Yield
1.90%
Market Cap
$26.26 billion
Rev. per Employee
$476,356
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/zigman2/quotes/210599714/realtime
US : S&P US
3,044.31
+14.58 +0.48%
Volume: 4.38B
May 29, 2020 5:14p
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