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Hormel Foods Cuts FY22 Earnings View Below Market, Raises Sales Forecast - Update

Hormel Foods Corp. (HRL) Thursday trimmed fiscal 2022 earnings view below market estimates citing escalating cost pressures, but raised net sales view after reporting higher third-quarter results.

For the year, the company now expects earnings per share in the range of $1.78 to $1.85, down from previously expected $1.87 to $1.97.

On average, 12 analysts polled by Thomson Reuters expect earnings of $1.88 per share for the year. Analysts' estimates typically exclude special items.

Jim Snee, chairman of the board, president and chief executive officer, said, "We expect elevated cost inflation to persist, primarily related to operations, logistics and raw material inputs. As a result, we are revising our full year earnings guidance range. We view the majority of the escalated cost pressures we are currently absorbing as transient and likely to subside over the coming quarters."

Further, net Sales are now expected to be in the $12.2 billion to $12.8 billion range, higher than previously expected range of $11.7 billion to $12.5 billion. Analysts estimate sales of $12.45 billion for the year.

Snee said the company is confident in its ability to exceed previous sales guidance due to strong demand for foodservice and center store grocery brands, higher turkey markets and the pricing actions.

In pre-market activity on the NYSE, Hormel Foods shares were losing around 4.2 percent to trade at $48.18.

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