Austin, Minnesota-based Hormel Foods Corporation (HRL) develops, processes, and distributes various meat, nuts, and other food products to foodservice, convenience store, and commercial customers. Valued at $16.2 billion by market cap, the company markets its products around the world under a variety of branded names like HORMEL, ALWAYS TENDER, APPLEGATE, AUSTIN BLUES, BLACK LABEL, BURKE, CAFÉ H, CHI-CHI'S, and more. The diversified food giant is expected to announce its fiscal second-quarter earnings for 2025 on Thursday, May 29.
Ahead of the event, analysts expect HRL to report a profit of $0.35 per share on a diluted basis, down 7.9% from $0.38 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect HRL to report EPS of $1.61, up 1.9% from $1.58 in fiscal 2024. Its EPS is expected to rise 10.6% year over year to $1.78 in fiscal 2026.
HRL stock has underperformed the S&P 500’s ($SPX) 8.7% gains over the past 52 weeks, with shares down 16.4% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.1% gains over the same time frame.
HRL's underperformance can be linked to reduced profits in the retail and foodservice sectors, declining volumes in all business units, and rising expenses. The company also faced challenges due to ongoing issues with snack nuts supply, which further impacted its overall performance.
On Feb. 27, HRL shares closed down more than 1% after reporting its Q1 results. Its adjusted EPS of $0.35 missed Wall Street expectations of $0.37. The company’s revenue was $3 billion, beating Wall Street forecasts of $2.94 billion. HRL expects full-year adjusted EPS in the range of $1.58 to $1.72, and expects revenue in the range of $11.9 billion to $12.2 billion.
Analysts’ consensus opinion on HRL stock is cautious, with a “Hold” rating overall. Out of nine analysts covering the stock, two advise a “Strong Buy” rating, six give a “Hold,” and one recommends a “Strong Sell.” HRL’s average analyst price target is $32.28, indicating a potential upside of 9% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
