Austin, Minnesota-based Hormel Foods Corporation (HRL) develops, processes, and distributes a range of 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 third-quarter earnings for 2025 on Wednesday, Sep. 3.
Ahead of the event, analysts expect HRL to report a profit of $0.41 per share on a diluted basis, up 10.8% from $0.37 per share in the year-ago quarter. The company beat or matched 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 $1.60, up 1.3% from $1.58 in fiscal 2024. Its EPS is expected to rise 10% year over year to $1.76 in fiscal 2026.
HRL stock has underperformed the S&P 500 Index’s ($SPX) 17.3% gains over the past 52 weeks, with shares down 7% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 4.6% gains over the same time frame.
HRL has faced challenges passing rising costs to consumers, the avian flu outbreak, a slow rebound in China, and acquisition issues with Planters. These issues have impacted sales volumes, particularly in the retail and foodservice sectors. The Trump administration tariffs on imported ingredients have also affected profits across the company's verticals.
On May 29, HRL shares closed up more than 1% after reporting its Q2 results. Its adjusted EPS of $0.35 met Wall Street's expectations. The company’s revenue was $2.9 billion, also meeting Wall Street forecasts. HRL expects full-year adjusted EPS in the range of $1.58 to $1.68.
Analysts’ consensus opinion on HRL stock is reasonably bullish, with an overall “Moderate Buy” rating. Out of 10 analysts covering the stock, three advise a “Strong Buy” rating, and seven give a “Hold.” HRL’s average analyst price target is $32.88, indicating a potential upside of 12.2% 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.
