Hormel Foods (NYSE:HRL) Announces Quarterly Earnings Results

Hormel Foods (NYSE:HRL) issued its quarterly earnings data on Thursday. The company reported $0.34 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $0.02, FiscalAI reports. The firm had revenue of $3.03 billion for the quarter, compared to analyst estimates of $3.07 billion. Hormel Foods had a net margin of 3.95% and a return on equity of 9.41%. The company’s revenue was up 1.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.35 EPS. Hormel Foods updated its FY 2026 guidance to 1.430-1.510 EPS.

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

• Hormel reported Q1 organic net sales growth of 2% (fifth consecutive quarter) and adjusted diluted EPS of $0.34, and reaffirmed full‑year guidance of organic sales +1–4% and adjusted EPS of $1.43–$1.51, with Q2 EPS expected flat to slightly up.
• Foodservice and International delivered high single‑digit organic net sales and strong segment profit growth, while Retail declined due to the strategic exit of non‑core private‑label snack nuts and timing of pricing actions, producing mixed segment results.
• Hormel agreed to sell its whole‑bird (hen) turkey operations to Life‑Science Innovations to reduce exposure to volatile, low‑margin commodity sales while retaining Jennie‑O value‑added products; the transaction is expected to close by end of Q2 and reduce FY26 net sales by roughly $50M (larger impact in 2027).
• Elevated input costs (notably beef and pork trim — pork trim up ~12% YoY) and unexpected logistics/freight cost increases from severe winter weather materially pressured gross profit and margins in Q1.
• Management expects savings from its restructuring and Transform & Modernize initiatives (plus a second wave of retail pricing) to begin flowing in Q2, supporting sequential margin improvement and productivity gains.

Hormel Foods Stock Up 3.9%

Shares of Hormel Foods stock traded up $0.98 during trading hours on Friday, reaching $25.80. 2,677,528 shares of the company’s stock were exchanged, compared to its average volume of 4,925,504. The stock has a market cap of $14.19 billion, a P/E ratio of 29.70, a P/E/G ratio of 2.57 and a beta of 0.33. The company has a 50 day moving average of $24.20 and a two-hundred day moving average of $24.36. The company has a current ratio of 2.47, a quick ratio of 1.20 and a debt-to-equity ratio of 0.36. Hormel Foods has a fifty-two week low of $21.03 and a fifty-two week high of $32.07.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Barclays set a $30.00 price target on shares of Hormel Foods and gave the company an “overweight” rating in a research note on Tuesday, December 9th. Piper Sandler reissued a “neutral” rating and issued a $26.00 target price (up from $25.00) on shares of Hormel Foods in a research note on Friday, December 5th. Zacks Research upgraded Hormel Foods from a “strong sell” rating to a “hold” rating in a research report on Monday, December 29th. Wall Street Zen upgraded Hormel Foods from a “sell” rating to a “hold” rating in a report on Saturday, January 17th. Finally, The Goldman Sachs Group set a $27.00 price objective on Hormel Foods and gave the stock a “buy” rating in a research report on Thursday, October 30th. Three research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Hormel Foods presently has an average rating of “Hold” and an average target price of $27.71.

Key Stories Impacting Hormel Foods

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

• Positive Sentiment: Zacks upgraded HRL to a Zacks Rank #2 (Buy), signaling improving analyst sentiment that can drive near-term demand for the shares. Hormel (HRL) Upgraded to Buy
• Positive Sentiment: Stephens raised its price target from $25 to $27 (equal-weight), giving the stock a measurable upside signal from a sell-side shop. Benzinga
• Positive Sentiment: Q1 adjusted EPS beat estimates ($0.34 actual vs. $0.32 consensus), showing sequential improvement in profitability that supports investor optimism. Q1 Earnings Beat
• Neutral Sentiment: Management updated FY2026 guidance to an EPS range of $1.43–$1.51 and revenue guidance of $12.2B–$12.5B; the range roughly tracks Street expectations but leaves little clear upside. Q1 Results / Guidance
• Neutral Sentiment: Coverage pieces highlight that Hormel’s turnaround and portfolio reshaping are gaining traction, and valuation/strategy stories are prompting investor re-evaluation rather than immediate directional conviction. Valuation After Guidance Hike
• Negative Sentiment: Revenue missed estimates ($3.03B vs. $3.07B), and Reuters flagged weak U.S. retail demand as consumers trade down — a near-term growth headwind that could pressure top-line momentum. Hormel misses quarterly sales estimates
• Negative Sentiment: Analyst commentary and a Seeking Alpha review note that, despite Dividend King status, Hormel has underperformed peers (weak multi-year total return) and faces margin/volume pressures — risks investors should weigh against the turnaround narrative. Hormel: Hope Feels Canned

Institutional Investors Weigh In On Hormel Foods

Institutional investors and hedge funds have recently modified their holdings of the company. Corient Private Wealth LLC increased its holdings in shares of Hormel Foods by 61.6% in the fourth 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 shares of Hormel Foods during the 4th quarter worth about $1,503,000. Strive Financial Group LLC acquired a new position in Hormel Foods in the 4th quarter valued at about $27,000. Vident Advisory LLC raised its holdings in Hormel Foods by 303.0% in the 4th quarter. Vident Advisory LLC now owns 61,735 shares of the company’s stock valued at $1,463,000 after acquiring an additional 46,415 shares during the period. Finally, Empowered Funds LLC bought a new position in Hormel Foods in the 4th quarter valued at about $1,168,000. 40.99% of the stock is owned by institutional investors.

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.