Investors lost their appetite for Hormel Foods (HRL:NYSE) after the global branded food group served up mixed second-quarter results in May, but the stock has been shaken from its torpor in recent weeks on optimism surrounding management’s turnaround plan and Mars’ takeover of Kellanova (K:NYSE), which has highlighted the resilience and growth potential of selective food sector names.

Bulls will be hoping for positive noises on premium meat demand and progress against Hormel’s ‘transform and modernise’ initiative, which involves delivering supply chain savings and improving margins, when the Minnesota-based firm delivers third-quarter earnings (4 September).

May saw the company behind turkey products leader Jennie-O, Planters peanuts, SPAM luncheon meat and Applegate Naturals bacon post a surprise second-quarter earnings beat as robust demand for premium meats combined with the fruits of cost savings.

Unfortunately, quarterly sales dipped from $2.98 billion to $2.89 billion and operating income fell 15% to $252 million amid challenges in Hormel’s retail business, including a ‘significant’ year-on-year decline in whole-bird turkey volumes and prices.

However, continued food service strength gave Hormel the confidence to hike its full-year earnings forecast from the $1.51 to $1.65 per share range to between $1.55 and $1.65.

US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

3 Sept: Zscaler 

4 Sept: Copart, Dick’s Sporting Goods, GameStop, Hewlett Packard, Hormel Foods

5 Sept: Broadcom, UiPath

6 Sept: Kroger

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