Shares of Hormel Foods Corp tumbled 6.4% in premarket trade Thursday, after the branded foods company reported fiscal third-quarter sales that came up shy of expectations and cut its outlook. Net income rose to $210.2 million, or 39 cents a share, from $182.5 million, or 34 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 39 cents. Sales grew 7% to $2.36 billion but was just below the FactSet consensus of $2.39 billion. Refrigerated foods sales rose 10% to $1.20 billion, but missed the FactSet consensus of $1.24 billion, while grocery products sales eased 0.2% to $617.7 million, but beat expectations of $578.8 million, and Jennie-O Turkey sales rose 7.9% to $398.1 million to top expectations of $365.4 million. The company affirmed its 2018 EPS guidance range of $1.81 to $1.95, but lowered its sales outlook to $9.40 billion to $9.60 billion from $9.70 billion to $10.10 billion. The company said its outlook comes at its deals with "volatility due to tariffs and broader industry dynamics." The stock has rallied 7.5% over the past three months while the S&P 500 has gained 4.7%.
Have breaking news sent to your inbox. Subscribe to MarketWatch's free Bulletin emails.