Hormel Foods (HRL) shares sank as the food company’s sales fell and it cut its outlook on lower prices and factory disruptions. 

The maker of Spam canned meat and Skippy peanut butter said fiscal third-quarter revenue declined 2.2% to $2.9 billion, short of forecasts. Diluted earnings per share of $0.37 was in line with estimates.

The stock was recently down more than 7%. The shares are now in the red for 2024.

The company now anticipates full-year revenue will be between $11.8 billion and $12.1 billion, down from its previous outlook of $12.2 billion to $12.5 billion. It narrowed its diluted EPS range to $1.57 to $1.63 from $1.55 to $1.65. Visible Alpha's current consensus estimates are for revenue of $12.1 billion and earnings of $1.56 per share.

Sales at the company's retail division tumbled 7%, while volumes dipped 9%. The company blamed the weakness on lower prices for turkey, falling contract manufacturing volumes, and reduced sales of Planters nut products, among other issues.

Sales rose 7% and volumes gained 2% at its foodservice unit. International segment sales were down 2% and volumes fell 13%.