Ex-Dividend Stocks: Apache, Hormel
"Hormel reported 2Q12 EPS of $0.48, ahead of our $0.45 estimate," Credit Suisse analysts wrote in a May 24 report. "The quality of the results was fair but not great. SG&A of $149 million was down 7% from a year ago (-7.5% versus our estimate). Volume declined 2%, and Jennie-O's operating margin was unsustainably high at 18%. However, given the weak trends overall in the food industry, it was encouraging to see HRL still delivering earnings growth. We remain on the sidelines due to our concern that turkey margins will decline substantially, thus impairing earnings growth. We are modestly raising our 2012 and 2013 EPS estimates to $1.87 and $2.03 (from $1.85 and $2.00), respectively. We are maintaining our $32 TP."
Forward Annual Dividend Yield: 2%
-- Written by Alexandra Zendrian
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