Hormel Foods (NYSE:HRL) Announces Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Hormel Foods (NYSE:HRL) issued its quarterly earnings data on Thursday. The company reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05, FiscalAI reports. The company had revenue of $2.97 billion during the quarter, compared to the consensus estimate of $2.96 billion. Hormel Foods had a net margin of 3.82% and a return on equity of 9.74%. Hormel Foods’s revenue for the quarter was up 2.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.35 earnings per share. Hormel Foods updated its FY 2026 guidance to 1.430-1.510 EPS.

Here are the key takeaways from Hormel Foods’ conference call:

• Hormel delivered a strong second quarter with 6th consecutive quarter of organic net sales growth, up 3% overall, and adjusted EPS up 14% to $0.40. Management said the quarter exceeded expectations and reflected broad strength across the business.
• Food service was a standout, with 7% organic sales growth and 11% segment profit growth, driven by pricing actions, improved supply-chain execution, and continued demand for solutions in a pressured traffic environment. International also performed well, with 5% sales growth and 20% profit growth.
• Retail returned to growth, posting 1% organic sales growth and 13% segment profit growth. Momentum in priority brands like Jennie-O, Applegate, and Herdez, along with pricing and mix benefits, helped offset weaker areas.
• The company reaffirmed full-year guidance for net sales of $12.2 billion-$12.5 billion and adjusted EPS of $1.43-$1.51, saying it now trends toward the upper half of the earnings range. Management also warned that Q3 EPS is likely to be roughly flat year over year due to fuel, commodity, and inventory-rebalancing headwinds.
• Hormel completed the divestiture of its whole bird turkey business, which supports its shift toward higher-value, less volatile branded products. The transaction will reduce fiscal 2026 sales by about $50 million with minimal impact on adjusted earnings.

Hormel Foods Price Performance

NYSE HRL opened at $23.26 on Friday. Hormel Foods has a 12-month low of $19.70 and a 12-month high of $31.86. The firm’s fifty day simple moving average is $21.41 and its two-hundred day simple moving average is $22.97. The company has a current ratio of 1.94, a quick ratio of 1.37 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $12.80 billion, a P/E ratio of 27.36, a P/E/G ratio of 3.13 and a beta of 0.33.

Hormel Foods Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Monday, July 13th will be issued a $0.2925 dividend. This represents a $1.17 annualized dividend and a yield of 5.0%. The ex-dividend date of this dividend is Monday, July 13th. Hormel Foods’s payout ratio is currently 137.65%.

Institutional Investors Weigh In On Hormel Foods

A number of large investors have recently made changes to their positions in the stock. Banco Bilbao Vizcaya Argentaria S.A. grew its stake in Hormel Foods by 5.0% during the fourth quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 8,967 shares of the company’s stock worth $213,000 after buying an additional 431 shares during the period. Siemens Fonds Invest GmbH grew its stake in Hormel Foods by 3.8% during the third quarter. Siemens Fonds Invest GmbH now owns 13,407 shares of the company’s stock worth $332,000 after buying an additional 486 shares during the period. Public Employees Retirement System of Ohio grew its stake in Hormel Foods by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 90,362 shares of the company’s stock worth $2,236,000 after buying an additional 560 shares during the period. Northwestern Mutual Wealth Management Co. grew its stake in Hormel Foods by 1.3% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 46,389 shares of the company’s stock worth $1,148,000 after buying an additional 576 shares during the period. Finally, Bank of Nova Scotia grew its stake in Hormel Foods by 2.3% during the second quarter. Bank of Nova Scotia now owns 30,306 shares of the company’s stock worth $917,000 after buying an additional 671 shares during the period. 40.99% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Bank of America boosted their price objective on shares of Hormel Foods from $23.00 to $25.00 and gave the stock a “neutral” rating in a research note on Friday. Stephens boosted their price objective on shares of Hormel Foods from $22.00 to $25.00 and gave the stock an “equal weight” rating in a research note on Friday. The Goldman Sachs Group set a $25.00 price objective on shares of Hormel Foods in a research note on Thursday, May 21st. Weiss Ratings reissued a “sell (d+)” rating on shares of Hormel Foods in a research note on Tuesday, April 21st. Finally, JPMorgan Chase & Co. reissued a “neutral” rating and issued a $23.00 price objective (down from $28.00) on shares of Hormel Foods in a research note on Thursday, April 9th. Two research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Hormel Foods presently has an average rating of “Hold” and an average price target of $25.67.

Key Headlines Impacting Hormel Foods

Here are the key news stories impacting Hormel Foods this week:

• Positive Sentiment: Hormel beat quarterly earnings and revenue expectations, with broad-based segment profit growth and stronger adjusted margins supporting the stock. Reuters article
• Positive Sentiment: Management reaffirmed full-year adjusted EPS guidance of $1.43 to $1.51, signaling confidence that the profit recovery can continue even after portfolio changes. PR Newswire release
• Positive Sentiment: Analysts responded by raising price targets to $25 from $22-$23, suggesting more upside is possible if the turnaround continues. Benzinga article
• Neutral Sentiment: Hormel updated GAAP EPS guidance lower due to items tied to the turkey business divestiture, but said the impact on adjusted earnings should be minimal.
• Neutral Sentiment: Some reports noted that profit was lower year over year, even though results still came in ahead of expectations and showed operational improvement. WSJ article

Hormel Foods Company Profile

Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company’s portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.

Among its best-known brands, Hormel Foods produces SPAM® canned meats, Jennie-O® turkey products, Skippy® peanut butter and Applegate® natural and organic meats.