SUGAR LAND--December 2, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--Hormel Foods Corporation (NYSE:HRL) (Austin, Minnesota) announced earnings for the fourth-quarter and fiscal year 2008 last week. Although sales were up 12% for the quarter, the company's quarterly net earnings fell 32%, from $101.2 million in 4Q07 to $67.8 million this year. Volatility in both the commodities markets and consumer buying patterns has caused rapid change in the economic situation for many U.S. food producers. In a conference call regarding the earnings, Jeffrey M. Ettinger, Hormel's President and CEO, said, "Without a question, we are in a unique and challenging economic environment. Demand has been impacted by the trend to more at-home dining and through changing consumer preferences at retail. These circumstances, coupled with spikes in certain raw materials costs, took a toll on our earnings this quarter."
Other companies featured: Pilgrim's Pride Corporation (NYSE:PPC), Tyson Foods (NYSE:TSN)
Last week marked yet another rollercoaster performance in the stock market, as major indices clocked in yet another weekly loss. Markets rebounded from their lows on Monday as they were reassured by General Electric (GE) that it will maintain its dividend payment in 2009, which boosted the stock by over $2 in one day. Several more dividend stocks rewarded their patient shareholders with a raise in their quarterly payments. Dividends are normally paid out of earnings and are often used to measure a company’s financial condition. Only the companies that are experiencing significant increases in free cash flow will be in a position to provide a growing stream of dividend payments to their stockholders. Enbridge Inc (ENB), which engages in the transportation and distribution of crude oil and natural gas, announced that its Board has approved a 12%[More...]
Last week S&P 500 had its largest weekly increase since 1974. Most investors are wondering if the bottom is in after the broad US index average bounced off its 11 year lows it had reached a week earlier. It was a week where Bloomberg reported stock dividends disappearing at the fastest rate since 1950s. According to the article the recession and global credit crunch are reducing profits for the fifth straight quarter and leaving less spare cash for quarterly payments to shareholders. Not all companies are conserving cash however; there were several dividend increases which reiterate my opinion that the dividend cuts might not spread to the non-financial sector. South Jersey Industries[More...]
Last week, Bank of Montreal (NYSE: BMO), one of Canada's oldest and largest banks, reported growth in its fiscal fourth-quarter earnings. But it may be the only one that does, as at least two of the Canadian banks scheduled to report fourth-quarter numbers this week have already released preliminary results that warn of lower earnings due to debt write-downs and trading losses.
Analysts surveyed by Thomson Reuters expect Toronto-based Canadian Imperial Bank of Commerce (NYSE: CM) to post earnings 42.6% lower than a year ago, or $1.28 per share. CIBC beat estimates by a penny in the third quarter, but missed by a penny in the period before that. The bank faces a class-action lawsuit related to investments in collateralized debt obligations consisting of U.S. subprime mortgages. Shares have climbed 20.7% from a recent 52-week low of $39.52, but are down 37.8% in the past three months.
Toronto Dominion Bank (NYSE: TD), Bank of Nova Scotia (NYSE: BNS), and Royal Bank of Canada (NYSE: RY) are expected to report more modest earnings declines of $1.01 per share, $0.73 per share, and $0.83 per share, respectively. All three Toronto-based banks topped estimates in the third quarter. Toronto Dominion and RBC have recently announced plans to offer shares in order to raise capital. Toronto Dominion and Scotiabank have been trading near 52-week lows, and their share prices are down around 39% in the past three months. But only Toronto Dominion has a consensus buy recommendation from analysts.
Dividend investing in the classic implementation focuses on identifying solid companies with a record of growing their dividends each year; and an expectation that it will continue into the future. The focus is not solely on yield but a combination of yield and[More...]
Highlighted stocks include Hot Topic Inc. (HOTT), Hormel Foods (HRL), JetBlue Airways Corporation (JBLU) and Winn-Dixie (WINN). Thanksgiving has implications for many industry groups. Therefore, I thought it would be timely to follow up on these groups, all of which have been featured in this column before. Thanksgiving[More...]
Companies featured in this segment: Alexandria Real Estate Equities (NYSE:ARE), Hormel Foods Corporation (NYSE:HRL), Pilgrim’s Pride Corporation (NYSE:PPC), Tyson Food (NYSE:TSN), Energy Incorporated (NYSE:TE), Suhail Bahwan Group Holding LLC, Mitsubishi Heavy Industries Limited (TYO:7011), Orascom Construction Industries (CAI:OCIC), Daewoo Engineering & Construction Company (SEO:047040), Total S.A. (NYSE:TOT), Hyundai Engineering & Construction Company Limited (SEO:000720), Hanwha Corporation (SEO:000880), Daewoo International Corporation (SEO:047050), Hanwha Corporation (SEO:000880), Daewoo International Corporation (SEO:047050), International Paper (NYSE:IP), Energy Resources of Australia Limited (ASX:ERA), Rio Tinto (NYSE:RTP), BHP Billiton Limited (NYSE:BHP), Mega Uranium Limited (TSX:MGA), and Cameco (NYSE:CCJ)