Shares of food company Hormel (NYSE: HRL) climbed 16.3% during February, according to data provided by S&P Global Market Intelligence. The stock was essentially flat and underperforming the S 500 for most of the month. But the company reported financial results for the fiscal first quarter of 2024 on Feb. 29, and shares subsequently jumped to its 16% monthly gain.

Investors may be confused by the market's excitement after looking at Hormel's headline numbers. The company's Q1 net sales (which cover the the quarterly period that ended on Jan. 28) were up a paltry 1% year over year. And its Q1 operating income of $284 million was actually down 2%.

Hormel's forward guidance was equally bland. The company expects full-year fiscal 2024 net sales of $12.5 billion at most, which would only be 3% growth from its fiscal 2023. Likewise, its guidance for adjusted earnings per share (EPS) is $1.51 to $1.65. For perspective, it had adjusted EPS of $1.61 in fiscal 2023, so its profitability could be down this year.

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Source Fool.com