Hormel Foods (NYSE:HRL) Announces Quarterly Earnings Results

Hormel Foods (NYSE:HRL) issued its earnings results on Thursday. The company reported $0.37 earnings per share for the quarter, beating analysts’ consensus estimates of $0.35 by $0.02, FiscalAI reports. The company had revenue of $2.96 billion for the quarter, compared to the consensus estimate of $3.03 billion. Hormel Foods had a return on equity of 9.91% and a net margin of 2.82%.The firm’s quarterly revenue was down 2.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.35 EPS. Hormel Foods updated its FY 2026 guidance to 1.450-1.510 EPS.

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

• Hormel Foods raised and narrowed its fiscal 2026 adjusted EPS outlook to $1.45–$1.51, representing 6%–10% year-over-year growth, while organic net sales guidance was narrowed to 1%–2%.
• Foodservice delivered its 12th consecutive quarter of organic sales growth, with premium prepared proteins and branded pepperoni performing well; profit growth outpaced sales and margins expanded.
• Third-quarter organic sales declined 2%, and Retail experienced a significant volume decline due to portfolio exits, pricing elasticity, and a strained consumer environment, although priority brands such as JENNIE-O Ground Turkey, Applegate, and Planters posted growth.
• International results were affected by one-time items, including the Brazil divestiture, an Indonesia investment impairment, and a legal-entity transition that delayed SPAM export sales; management said the actions should sharpen focus on Asia Pacific and support longer-term growth.
• Operating cash flow rose 54% to $241 million, cash increased to $840 million, and management reiterated its commitment to the dividend while retaining flexibility for strategic acquisitions and partnerships.

Hormel Foods Price Performance

Hormel Foods stock opened at $21.53 on Friday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.97 and a current ratio of 1.88. The firm has a market cap of $11.85 billion, a P/E ratio of 34.18, a P/E/G ratio of 2.45 and a beta of 0.34. The business’s fifty day moving average is $24.76 and its two-hundred day moving average is $23.38. Hormel Foods has a 52 week low of $19.70 and a 52 week high of $26.60.

Key Headlines Impacting Hormel Foods

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

• Positive Sentiment: Hormel reported adjusted third-quarter EPS of $0.37, ahead of analyst estimates of approximately $0.35–$0.36 and up from $0.35 a year earlier. Margin expansion and cost management helped offset weaker volumes. Hormel Foods Q3 Earnings Beat on Margin Expansion, Sales Miss
• Positive Sentiment: Management raised and narrowed its fiscal 2026 adjusted EPS outlook to $1.45–$1.51, compared with prior guidance of $1.40–$1.50. Operating cash flow also increased 54% to $240.6 million. Hormel Foods Reports Third Quarter Fiscal 2026 Results
• Neutral Sentiment: BNP Paribas Exane lowered its HRL price target from $27 to $26 and assigned a neutral rating. The revised target still implies meaningful potential upside from recent levels, but the rating signals limited confidence in near-term growth. BNP Paribas Exane Hormel Foods Price Target Update
• Neutral Sentiment: Some analysts view Hormel’s elevated dividend yield—reported at roughly 5.5% after the sell-off—and valuation as attractive for long-term income investors, though earnings-based valuation remains a concern. Hormel Foods: A Protein Powerhouse With a Secure Yield
• Negative Sentiment: Third-quarter revenue fell 2.4% year over year to $2.96 billion, missing the roughly $3.03 billion consensus estimate. Retail sales declined 4%, international sales dropped 5%, and management cited pressured consumers, lower commodity prices and weak private-label snack-nut demand. Hormel Foods Cuts Annual Sales Forecast
• Negative Sentiment: Hormel reduced fiscal 2026 revenue guidance to $12.1–$12.2 billion from $12.2–$12.5 billion, reinforcing concerns that sluggish demand and falling sales will limit growth despite improved margins and EPS. Why Hormel Foods Stock Swooned

Insider Buying and Selling at Hormel Foods

In related news, Director Gary C. Bhojwani sold 20,200 shares of the firm’s stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $24.51, for a total value of $495,102.00. Following the completion of the sale, the director owned 32,002 shares of the company’s stock, valued at $784,369.02. This trade represents a 38.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 0.58% of the company’s stock.

Hedge Funds Weigh In On Hormel Foods

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in HRL. UMB Bank n.a. boosted its position in Hormel Foods by 172.2% during the fourth quarter. UMB Bank n.a. now owns 3,100 shares of the company’s stock worth $73,000 after purchasing an additional 1,961 shares during the period. Smartleaf Asset Management LLC boosted its holdings in Hormel Foods by 1,089.1% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,628 shares of the company’s stock valued at $63,000 after purchasing an additional 2,407 shares during the period. Global Retirement Partners LLC increased its holdings in shares of Hormel Foods by 110.9% during the fourth quarter. Global Retirement Partners LLC now owns 2,255 shares of the company’s stock worth $53,000 after purchasing an additional 1,186 shares during the period. Banco Bilbao Vizcaya Argentaria S.A. acquired a new position in Hormel Foods in the 3rd quarter valued at $211,000. Finally, Quadrant Capital Group LLC bought a new stake in Hormel Foods during the third quarter worth about $73,000. Institutional investors own 40.99% of the company’s stock.

Analysts Set New Price Targets

HRL has been the topic of several analyst reports. The Goldman Sachs Group set a $25.00 price target on Hormel Foods in a report on Thursday, May 21st. Stephens set a $23.00 price objective on Hormel Foods in a research report on Friday. BNP Paribas Exane dropped their price target on Hormel Foods from $27.00 to $26.00 and set a “neutral” rating on the stock in a research report on Friday. JPMorgan Chase & Co. increased their target price on shares of Hormel Foods from $25.00 to $26.00 and gave the company a “neutral” rating in a research note on Friday, August 14th. Finally, Bank of America boosted their price target on Hormel Foods from $25.00 to $27.00 and gave the company a “neutral” rating in a research note on Tuesday, June 30th. Two analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Hormel Foods has a consensus rating of “Hold” and an average price target of $26.14.

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.