Hormel Foods (NYSE:HRL) Posts Earnings Results

Key Points

• Hormel Foods beat earnings expectations, reporting quarterly EPS of $0.37 versus the $0.35 consensus, but revenue of $2.96 billion fell short of analysts’ $3.03 billion estimate.
• Weakness persisted in key segments: retail sales declined 4% and international sales fell 5%. Reported net income dropped sharply to $59.6 million, partly due to divestiture, impairment and litigation charges.
• Hormel narrowed and raised its adjusted fiscal 2026 EPS outlook to $1.45–$1.51, while cutting revenue guidance to $12.1–$12.2 billion. Analysts maintain a consensus Hold rating with a $26.57 price target.

Hormel Foods (NYSE:HRL - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.35 by $0.02, FiscalAI reports. The company had revenue of $2.96 billion during the quarter, compared to analysts' expectations of $3.03 billion. Hormel Foods had a return on equity of 9.74% and a net margin of 3.82%.

Hormel Foods Price Performance

Shares of HRL stock opened at $23.69 on Thursday. The stock's fifty day simple moving average is $24.87 and its 200 day simple moving average is $23.41. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.94 and a quick ratio of 0.97. The firm has a market cap of $13.04 billion, a price-to-earnings ratio of 27.87, a P/E/G ratio of 2.74 and a beta of 0.34. Hormel Foods has a one year low of $19.70 and a one year high of $29.10.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on HRL. BNP Paribas Exane boosted their price objective on shares of Hormel Foods from $26.00 to $27.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 14th. Bank of America increased their price objective on Hormel Foods from $25.00 to $27.00 and gave the company a "neutral" rating in a research report on Tuesday, June 30th. JPMorgan Chase & Co. raised their price target on shares of Hormel Foods from $25.00 to $26.00 and gave the stock a "neutral" rating in a research report on Friday, August 14th. Weiss Ratings raised shares of Hormel Foods from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, August 12th. Finally, The Goldman Sachs Group set a $25.00 target price on shares of Hormel Foods in a research note on Thursday, May 21st. Two research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $26.57.

Key Stories Impacting Hormel Foods

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

• Positive Sentiment: Hormel raised and narrowed its fiscal 2026 adjusted diluted EPS outlook to $1.45–$1.51, from a previous range of $1.40–$1.50. The midpoint is broadly in line with the $1.50 analyst consensus, suggesting improved confidence in underlying profitability. Hormel Foods Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Operating cash flow increased 54% year over year to $240.6 million, while Foodservice sales grew 2%, indicating resilience in some channels. Hormel Foods Reports Third-Quarter Sales and EPS
• Neutral Sentiment: Hormel appointed former Tyson Foods executive Ash Bhumbla as chief financial officer. The leadership change could support financial and operational improvements, but its near-term earnings impact is unclear. Hormel Foods Names Former Tyson Executive CFO
• Negative Sentiment: Third-quarter net sales fell to $2.96 billion from $3.03 billion a year earlier and missed the approximately $3.03 billion consensus estimate. Retail sales declined 4% and International sales dropped 5%, reflecting weak volume. Hormel Foods Q3 Profit Declines on Weak Volume
• Negative Sentiment: Reported net earnings plunged to $59.6 million, or $0.11 per diluted share, from $183.7 million, or $0.33, a year earlier. Results included a $56 million Brazil divestiture loss, a $48 million Indonesia investment impairment, and a $38 million litigation settlement. Hormel Foods Reports Third-Quarter Sales and EPS
• Negative Sentiment: Fiscal 2026 revenue guidance was reduced to $12.1–$12.2 billion, versus the prior $12.2–$12.5 billion range, with the midpoint slightly below consensus. GAAP EPS guidance was set at $1.06–$1.12, signaling continued pressure from restructuring and special charges. Hormel Foods Cuts Sales Outlook

Insider Transactions at Hormel Foods

In other Hormel Foods news, Director Gary C. Bhojwani sold 20,200 shares of the stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $24.51, for a total transaction of $495,102.00. Following the completion of the transaction, the director directly owned 32,002 shares in the company, valued at $784,369.02. This represents a 38.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.58% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Hormel Foods

A number of hedge funds have recently made changes to their positions in the company. Corient Private Wealth LLC lifted its holdings in Hormel Foods by 61.6% during the 4th quarter. Corient Private Wealth LLC now owns 46,506 shares of the company's stock valued at $1,102,000 after purchasing an additional 17,721 shares during the last quarter. Alberta Investment Management Corp bought a new stake in Hormel Foods during the fourth quarter worth about $1,503,000. Strive Financial Group LLC acquired a new stake in shares of Hormel Foods during the fourth quarter worth approximately $27,000. Vident Advisory LLC increased its holdings in shares of Hormel Foods by 303.0% during the fourth quarter. Vident Advisory LLC now owns 61,735 shares of the company's stock worth $1,463,000 after buying an additional 46,415 shares in the last quarter. Finally, Empowered Funds LLC bought a new position in shares of Hormel Foods in the fourth quarter valued at approximately $1,168,000. Institutional investors and hedge funds own 40.99% of the company's stock.

About Hormel Foods

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.

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