Dividend.com: Leave Hormel on the Shelf

Hormel Foods Third-Quarter Profit Falls

Hormel Foods (HRL Quote - Cramer on HRL - Stock Picks), the maker of Spam and other packaged meat products, reported that third-quarter profit fell 9%. Higher meat, fuel, and other costs put a dent into margins, but revenue rose 10% to $1.68 billion.

The company's refrigerated foods division out shone the company's other segments, as sales climbed 8% to $890.1 million on strong demand for its Di Lusso Deli products and Hormel pepperoni. Management is saying that recent lower grain costs may not be felt until the spring of next year.

The company maintains its full-year earnings guidance of $2.22 to $2.28 a share. Analysts' earnings estimates are at $2.25.

Hormel Foods is in the neutral zone right now. Recent commodity price drops have us giving the stock a peek, but the valuation of 17 times earnings doesn't make the stock a screaming bargain. The stock does have a 2.11% dividend yield, based on Wednesday's closing stock price of $35.14, but we would avoid the stock and the sector for now.

Hormel Foods isn't a recommended dividend stock at this time, holding a Dividend.com rating of 3.2 out of 5 stars.

Barnes & Noble Plays Defense in Earnings Report

Barnes & Noble (BKS Quote - Cramer on BKS - Stock Picks) is doing its best to get through the current economic environment. Maintaining lower inventory and offering fewer discounts is helping the company prevent sales from eroding further, but playing from your heels, as they say in sports, makes it tough to win long term.

The company reported that overall sales fell 1.6% to $1.2 billion, and same-store sales, or sales for stores open at least a year, fell 4.7%. The company stands by yearly earnings estimates of $1.70 to $1.90 a share. Analysts estimate earnings of $1.74 a share.

« Previous Page

1 2 3 4

Next Page »