Hormel Foods (HRL) remains a 'hold' as margin recovery nears completion and volume growth prospects remain muted. HRL's Q3 saw adjusted EPS beat by $0.02, but organic sales declined 2% amid persistent consumer caution and food inflation. Free cash flow remains robust ($700M+ expected FY), supporting a secure 5% dividend yield and a strong balance sheet.
The headline numbers for Hormel (HRL) give insight into how the company performed in the quarter ended July 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Hormel Foods (HRL) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.35 per share a year ago.
The food company, which owns Spam and Skippy peanut butter, cut its outlook for annual sales to $12.1 billion to $12.2 billion, compared with a prior range of $12.2 billion to $12.5 billion.
HRL heads into the fiscal third quarter with consensus forecasts for modest sales and EPS growth, supported by protein demand, pricing and foodservice strength.
Looking beyond Wall Street's top-and-bottom-line estimate forecasts for Hormel (HRL), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended July 2026.
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HRL's latest portfolio move underscores its push to streamline international operations and focus on markets with stronger long-term growth potential.
Hormel Foods has increased its dividend for a stunning 60 consecutive years. It's a vaunted Dividend Aristocrat more than twice over. Hormel has a very good financial position. Its long-term debt/equity ratio is 0.4, while the interest coverage ratio is around 10. The P/E ratio is sitting at 17.4, based on midpoint guidance for this year's adjusted EPS. That's about as low as I've seen it on this stock.
Here is how Hormel Foods (HRL) and Kenvue (KVUE) have performed compared to their sector so far this year.
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Hormel Foods has been in a slow-motion bear hug. The stock sits 22.8% below its 52-week high, and the trailing GAAP payout ratio looks ugly after a $234 million non-cash impairment and a $61 million whole-bird turkey divestiture loss.