With a market cap of $17.3 billion, Hormel Foods Corporation (HRL) is a leading global manufacturer and marketer of meat and food products. With iconic brands like SKIPPY™, SPAM™, Hormel™, and Planters™, the company offers a wide range of perishable and shelf-stable products across retail, food service, and international markets. The Austin, Minnesota-based company is expected to announce its fiscal Q1 2025 earnings results on Thursday, Mar. 6.
Ahead of this event, analysts expect the branded food company to report a profit of $0.39 per share, down 4.9% from $0.41 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In the last reported quarter, HRL missed the consensus EPS estimate by 2.3%.
For fiscal 2025, analysts expect HRL to report an EPS of $1.67, up 5.7% from $1.58 in fiscal 2024. In addition, EPS is anticipated to grow nearly 12% year-over-year to $1.87 in fiscal 2026.
Shares of HRL have risen 1.5% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 22.9% surge and the Consumer Staples Select Sector SPDR Fund’s (XLP) 10.2% return over the same period.
Despite reporting lower-than-expected Q4 adjusted EPS of $0.42, shares of Hormel Foods rose marginally as it posted revenue of $3.1 billion, which matched the consensus forecasts. Gross profit increased year-over-year to $521.2 million, supported by lower logistics costs and benefits from the Transform and Modernize (T&M) initiative, with additional gains of $100 million - $150 million expected in fiscal 2025. Additionally, the company’s International and Foodservice segments showed sales growth, supported by strong demand in China and premium prepared proteins.
Furthermore, the announcement of the company's 59th consecutive year of quarterly dividends and optimistic fiscal 2025 guidance, including projected net sales of $11.9 billion - $12.2 billion and adjusted EPS of $1.58 - $1.72, further boosted investor confidence.
Analysts' consensus view on Hormel Foods’ stock is cautious, with a "Hold" rating overall. Among nine analysts covering the stock, two recommend "Strong Buy," five suggest "Hold," one gives "Moderate Sell," and one advises "Strong Sell." As of writing, HRL is trading below the average analyst price target of $32.43.
