Hormel faces margin pressures from rising input costs and weak volume growth, despite some success in passing on price increases to consumers. Planters and turkey segments show tentative improvement, but aggressive H2 guidance may be difficult to achieve given ongoing consumer and margin headwinds. A strong balance sheet and 3.9% dividend yield support stability, but limited earnings growth and valuation make shares unattractive for new investment.
The meat and snack company says its products seen as offering more value will drive an uptick in business in the second half of the year.
Despite its status as a dividend king, many investors weren't expecting much from Hormel Foods Corp. NYSE: HRL in its second-quarter earnings report for the 2025 fiscal year. The company didn't disappoint, but mixed results sent the stock down 2.8% immediately following the report.
HRL meets second-quarter earnings estimates as sales rise 0.4% year over year and volumes decline, but International units post modest net sales gains.
Hormel Foods Corporation (NYSE:HRL ) Q2 2025 Results Conference Call May 29, 2025 9:00 AM ET Company Participants Jess Blomberg - Director of Investor Relations Jim Snee - President and Chief Executive Officer Jacinth Smiley - Executive Vice President and Chief Financial Officer John Ghingo - Executive Vice President, Retail Segment Conference Call Participants Peter Galbo - Bank of America Michael Lavery - Piper Sandler Tom Palmer - Citi Ben Theurer - Barclays Heather Jones - Heather Jones Research Rupesh Parikh - Oppenheimer Pooran Sharma - Stephens Operator Good morning, ladies and gentlemen, and welcome to the Hormel's Foods Corporation Second Quarter Earnings Conference Call. At this time, all lines are in a listen-only mode.
Hormel Foods trimmed its earnings outlook for the year, which factors in the impact of tariffs and ongoing momentum of brands such as Planters peanuts and its turkey product.
Although the revenue and EPS for Hormel (HRL) give a sense of how its business performed in the quarter ended April 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Hormel Foods (HRL) came out with quarterly earnings of $0.35 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.38 per share a year ago.
Evaluate the expected performance of Hormel (HRL) for the quarter ended April 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
Leading the future of food, TSN, HRL and INGR are leveraging AgTech and food innovation to drive growth and meet evolving consumer demands.
Hormel (HRL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Many income investors are looking for a reliable dividend. For the record, it's not uncommon for a dividend-paying company to decrease the amount it pays or to cut its dividend altogether.