Hormel Foods (NYSE:HRL) Announces Quarterly Earnings Results

Key Points

• Hormel Foods reported earnings of $0.35 per share for the quarter, missing analyst expectations of $0.41 by $0.06, with a net margin of 6.27%.
• The company updated its guidance for Q4 2025 to $0.380-$0.400 EPS and for FY 2025 to $1.430-$1.450 EPS.
• Research firms have shown increasing confidence in Hormel, with several upgrades including JPMorgan Chase raising the target price from $29.00 to $34.00.

Hormel Foods (NYSE:HRL - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.41 by ($0.06), Zacks reports. Hormel Foods had a net margin of 6.27% and a return on equity of 10.20%. Hormel Foods updated its Q4 2025 guidance to 0.380-0.400 EPS and its FY 2025 guidance to 1.430-1.450 EPS.

Hormel Foods Price Performance

Shares of HRL opened at $29.02 on Thursday. The firm has a market capitalization of $15.96 billion, a price-to-earnings ratio of 21.33, a price-to-earnings-growth ratio of 3.27 and a beta of 0.31. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.17 and a current ratio of 2.47. Hormel Foods has a one year low of $27.59 and a one year high of $33.80. The stock's fifty day moving average is $29.42 and its 200-day moving average is $29.67.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. CANADA LIFE ASSURANCE Co increased its holdings in shares of Hormel Foods by 6.1% during the second quarter. CANADA LIFE ASSURANCE Co now owns 296,289 shares of the company's stock valued at $8,968,000 after purchasing an additional 17,090 shares during the period. Tower Research Capital LLC TRC increased its holdings in shares of Hormel Foods by 226.5% during the second quarter. Tower Research Capital LLC TRC now owns 25,216 shares of the company's stock valued at $763,000 after purchasing an additional 17,493 shares during the period. MUFG Securities EMEA plc acquired a new position in shares of Hormel Foods during the second quarter valued at $26,000. Captrust Financial Advisors increased its holdings in shares of Hormel Foods by 45.4% during the second quarter. Captrust Financial Advisors now owns 45,797 shares of the company's stock valued at $1,385,000 after purchasing an additional 14,290 shares during the period. Finally, Voleon Capital Management LP acquired a new position in shares of Hormel Foods during the second quarter valued at $1,771,000. 40.99% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have recently commented on HRL. JPMorgan Chase & Co. upgraded Hormel Foods from a "neutral" rating to an "overweight" rating and increased their target price for the company from $29.00 to $34.00 in a research note on Wednesday, August 20th. BNP Paribas upgraded Hormel Foods from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 27th. BNP Paribas Exane upgraded Hormel Foods from an "underperform" rating to a "neutral" rating and set a $30.00 target price for the company in a research note on Tuesday, May 27th. The Goldman Sachs Group began coverage on Hormel Foods in a research note on Monday, June 23rd. They set a "buy" rating and a $35.00 target price for the company. Finally, Stephens reiterated an "equal weight" rating and set a $31.00 target price on shares of Hormel Foods in a research note on Thursday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Hormel Foods has a consensus rating of "Moderate Buy" and an average target price of $33.00.

About Hormel Foods

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The company provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.

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