Core Insights - Hormel Foods Corporation reported second-quarter fiscal 2025 results with adjusted earnings of 35 cents per share, matching the Zacks Consensus Estimate, but down from 38 cents in the prior year [1] - Net sales increased by 0.4% year over year to $2,898.8 million, although it missed the consensus estimate of $2,905 million, with volumes declining by 5.7% [1] Financial Performance - Gross profit decreased to $484.4 million from $503.8 million in the year-ago quarter [2] - Adjusted operating income fell to $264.9 million from $275.9 million, with an adjusted operating margin of 9.1%, down from 9.6% [2] Segment Performance - Retail unit net sales decreased by 0.3% year over year to $1,783.8 million, with volumes down 6.6%, primarily due to lower commodity shipments [3] - Foodservice segment net sales increased by 0.5% to $936.4 million, with organic net sales rising by 4%, despite a volume decline of 7.3% [5] - International unit net sales grew by 7% to $178.5 million, with volumes up by 8.9%, driven by strong export performance, particularly in refrigerated products [7] Profitability by Segment - Segment profit for the Retail unit increased by 3.6% due to operational efficiencies and lower expenses [4] - Foodservice segment profit declined by 5.8% due to margin pressures, despite increased net sales [6] - International segment profit decreased by 20.7% due to an unfavorable export customer mix and softness in Brazil [8] Financial Health - Hormel Foods ended the quarter with cash and cash equivalents of $669.7 million and total long-term debt of $2,850.7 million [9] - The company returned nearly $159 million to shareholders via dividends [10] Future Outlook - Hormel Foods expects fiscal 2025 net sales to be between $12 billion and $12.2 billion, with organic net sales growth projected at 2% to 3% [12] - Operating income is anticipated to be between $1,118 million and $1,185 million, while adjusted operating income is expected to range from $1,175 million to $1,248 million [13] - Full-year diluted EPS is projected to be between $1.49 and $1.59, with adjusted EPS expected between $1.58 and $1.68 [14] Stock Performance - HRL stock has risen by 5.9% in the past three months, contrasting with a 1.8% decline in the industry [15]

Core Insights - Hormel Foods reported $2.9 billion in revenue for the quarter ended April 2025, reflecting a year-over-year increase of 0.4% and matching the Zacks Consensus Estimate, but showing a slight EPS decline from $0.38 to $0.35 [1] - The company did not deliver an EPS surprise, as the consensus EPS estimate was also $0.35 [1] Revenue Performance - Retail net sales were $1.78 billion, slightly above the estimated $1.77 billion, but down 0.3% year-over-year [4] - International net sales reached $178.53 million, exceeding the average estimate of $178.43 million, with a year-over-year increase of 7% [4] - Foodservice net sales were reported at $936.44 million, below the estimated $953.29 million, with a year-over-year increase of 0.5% [4] Segment Profit Analysis - Foodservice segment profit was $140.63 million, lower than the average estimate of $147.62 million [4] - International segment profit was $18.41 million, significantly below the estimated $23.85 million [4] - Retail segment profit was $137.14 million, exceeding the average estimate of $112.33 million [4] Stock Performance - Hormel's shares returned +0.5% over the past month, compared to the S&P 500 composite's +6.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Data and Key Metrics Changes - The company reported net sales of $2.9 billion for the second quarter, reflecting a 1% organic increase compared to the previous year [26] - Gross profit margin was 16.7%, impacted by higher commodity input costs, partially offset by savings from the Transform and Modernize initiative [27] - Diluted earnings per share were $0.33, with adjusted diluted earnings per share at $0.35, aligning with expectations [28] Business Line Data and Key Metrics Changes - The retail segment maintained leadership positions, with notable growth from the Applegate brand and Jennie O lean ground turkey, which continues to perform strongly [9][10] - The food service business outperformed the broader industry, with strong volume and net sales growth from branded products [12] - The international segment saw double-digit volume and net sales growth, particularly in exports and China [14] Market Data and Key Metrics Changes - The company anticipates strong second-half growth, particularly from the Turkey portfolio and the Planters brand, with overall net sales growth expected to be between 2% to 3% for the full year [20][34] - The competitive landscape for turkey has tightened, with expectations for share gains as competitors shutter facilities [94] Company Strategy and Development Direction - The company remains committed to delivering profitable and predictable growth, focusing on a diversified portfolio and the Transform and Modernize initiative [21][31] - Increased advertising investments are planned for the second half, particularly for the Planters brand and other key products [46] - The company is strategically positioned to navigate changing consumer preferences and market dynamics [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong second-half results, supported by positive momentum in key brands and segments [41][42] - The consumer sentiment is described as strained due to inflation and uncertainty in the macro environment, impacting overall demand [107] - The company is focused on managing input cost pressures and leveraging its diversified portfolio to sustain growth [33][34] Other Important Information - The company announced leadership changes, including the appointment of Kevin Myers to lead supply chain efforts and the retirement of Scott Okri [22][23] - Capital expenditures for fiscal 2025 are expected to be between $275 million to $300 million, focusing on capacity and technology investments [28] Q&A Session Summary Question: Can you help bridge the operating income outlook for the year? - Management highlighted strong positioning for the second half, with positive momentum in the Planters brand and value-added turkey [40][41] Question: What are the expectations for Turkey in the back half? - Management noted a tightening supply in the turkey market and emphasized the focus on value-added products [52][55] Question: Can you elaborate on the expected margin expansion in the second half? - Management expects margin expansion driven by turkey pricing and strong performance from the Planters brand [60][61] Question: How does the company plan to grow in the food service segment? - Management indicated a strong pipeline of innovation and favorable year-over-year comparisons as key drivers for growth [64][65] Question: What are the savings from the Transform and Modernize initiative? - Management reported executing 66 projects under the initiative, with a focus on improving logistics and inventory management [69][71] Question: What products are related to the inventory build for summer demand? - Management indicated that inventory was built for Planters and promotional products like Spam, while managing commodity input costs [74][76] Question: Is the company still confident in achieving the $250 million operating income growth target by FY 2026? - Management affirmed confidence in the target, emphasizing ongoing initiatives and the benefits of the Transform and Modernize program [105][106] Question: What is the current consumer sentiment? - Management described consumer sentiment as strained due to inflation and uncertainty, impacting overall demand [107]

Financial Data and Key Metrics Changes - The company reported net sales of $2.9 billion for the second quarter, reflecting a 1% organic increase compared to the previous year [25] - Gross profit margin was 16.7%, impacted by higher commodity input costs, partially offset by savings from the Transform and Modernize initiative [26] - Diluted earnings per share were $0.33, with adjusted diluted earnings per share at $0.35, aligning with expectations [28] - The company anticipates full-year net sales growth of 2% to 3% and adjusted diluted earnings per share in the range of $1.58 to $1.68 [19][34] Business Line Data and Key Metrics Changes - The retail segment maintained leadership positions, with notable growth from the Applegate brand and Jennie O lean ground turkey [6][8] - The food service business outperformed the broader industry, with strong volume and net sales growth from branded products [11] - The international business saw double-digit volume and net sales growth, particularly in exports and China [13] Market Data and Key Metrics Changes - The company experienced strong top-line growth in China, driven by customer and distribution expansions [13] - The food service segment is expected to achieve mid-single-digit growth in organic net sales, outperforming industry trends [60] Company Strategy and Development Direction - The company is focused on delivering profitable and predictable growth while navigating a dynamic operating environment [6] - The Transform and Modernize initiative is critical for restoring historical earnings growth and is on track to deliver expected benefits [29] - The company plans to increase advertising investments significantly in the second half of the year to support brand growth [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong second-half results, supported by a diversified portfolio and strategic initiatives [14][19] - The consumer sentiment is described as strained due to inflation and uncertainty in the macro environment [104] - The company remains committed to long-term growth despite challenges in the operating environment [20][103] Other Important Information - The company announced leadership changes, including the appointment of Kevin Myers to lead supply chain efforts and the retirement of Scott Okri [20][22] - Capital expenditures for fiscal 2025 are expected to be between $275 million and $300 million, focusing on capacity and technology investments [28] Q&A Session Summary Question: Can you help bridge the operating income outlook for the year? - Management highlighted strong positioning for the second half, with positive momentum in the Planters brand and value-added turkey [42][44] Question: What are the expectations for Turkey cadence in the back half? - Management noted a tightening supply in the turkey market but expressed confidence in their position and ability to capture upside during the fresh season [52][55] Question: Can you provide details on T and M savings? - Management confirmed that 66 projects were executed under the Transform and Modernize initiative, focusing on efficiency and logistics [67][70] Question: What products are related to the inventory build for summer demand? - The inventory build is strategically aligned with upcoming summer demands, particularly for Planters and promotional products [73][75] Question: How is the Planters brand expected to perform in the second half? - Management expressed optimism about the Planters brand, expecting continued sequential improvement and positive year-over-year consumption [82][84]

Financial Performance - Hormel Foods reported quarterly earnings of $0.35 per share, matching the Zacks Consensus Estimate, but down from $0.38 per share a year ago [1] - The company posted revenues of $2.9 billion for the quarter ended April 2025, slightly missing the Zacks Consensus Estimate by 0.20%, compared to $2.89 billion in the same quarter last year [2] - Over the last four quarters, Hormel has surpassed consensus EPS estimates only once and has topped revenue estimates just once [2] Stock Performance - Hormel shares have declined approximately 4.2% since the beginning of the year, while the S&P 500 has gained 0.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $2.99 billion, and for the current fiscal year, it is $1.61 on revenues of $12.13 billion [7] - The outlook for the Food - Meat Products industry, where Hormel operates, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable environment for performance [8]

Financial Performance & Outlook - The company narrows its fiscal year 2025 net sales outlook to a range of $12.0 billion to $12.2 billion [31] - The company narrows its fiscal year 2025 operating income outlook to a range of $1.12 billion to $1.19 billion [31] - The company narrows its fiscal year 2025 adjusted operating income outlook to a range of $1.18 billion to $1.25 billion [31] - The company narrows its fiscal year 2025 diluted EPS outlook to a range of $1.49 to $1.59 [31] - The company narrows its fiscal year 2025 adjusted diluted EPS outlook to a range of $1.58 to $1.68 [31] - The company expects organic net sales growth of 2% to 3% for fiscal year 2025 [32] Segment Performance - Retail segment volume decreased by 7% year-over-year in Q2 2025, while net sales were flat and segment profit increased by 4% [18] - Foodservice segment organic net sales increased by 4% year-over-year in Q2 2025, while organic volume decreased by 1% and segment profit decreased by 6% [25] - International segment volume increased by 9% year-over-year in Q2 2025, net sales increased by 7%, and segment profit decreased by 21% [28] Strategic Initiatives - The company anticipates incremental benefits from the Transform & Modernize (T&M) initiative in the range of $100 million to $150 million for fiscal year 2025 [32]

Financial Performance - Net sales for the second quarter of fiscal 2025 were $5.89 billion, with organic net sales up 1% compared to the prior year[5]. - Operating income was reported at $477 million, with an adjusted operating income of $519 million, resulting in an operating margin of 8.1%[5]. - The company narrowed its fiscal 2025 net sales outlook to between $12.0 billion and $12.2 billion, and diluted earnings per share expectations to $1.49 to $1.59[4][6]. - Net sales for the quarter ended April 27, 2025, were $2,898,810, an increase from $2,887,352 in the same quarter last year, representing a growth of 0.4%[24]. - Total net sales increased by 0.4% to $2,898,810 thousand in Q2 2025 from $2,887,352 thousand in Q2 2024[27]. - The company reported a total net sales of $5.888 billion for the six months ended April 27, 2025, a slight increase of 0.1% from $5.884 billion in the same period last year[39]. Earnings and Margins - Gross profit for the quarter was $484,433, down from $503,806 year-over-year, indicating a decrease of 3.0%[24]. - Operating income for the quarter was $248,352, slightly lower than $252,320 in the previous year, reflecting a decline of 1.9%[24]. - Net earnings attributable to Hormel Foods Corporation for the quarter were $180,017, compared to $189,278 in the same quarter last year, a decrease of 4.7%[24]. - Adjusted net earnings attributable to Hormel Foods Corporation decreased to $192,928 thousand in Q2 2025 from $207,562 thousand in Q2 2024[35]. - Adjusted diluted earnings per share for Q2 2025 were $0.35, down from $0.38 in Q2 2024, reflecting a decrease of 7.9%[36]. - The adjusted operating margin for Q2 2025 was 9.1%, compared to 9.6% in Q2 2024[36]. Tax and Expenses - The effective tax rate for the quarter was 21.9%, with expectations for fiscal 2025 to be between 22.0% and 23.0%[17]. - The effective tax rate for the quarter was 22.0%, a slight improvement from 22.5% in the same quarter last year[24]. - Net unallocated expenses rose by 7.8% to $65,411 thousand in Q2 2025 from $60,694 thousand in Q2 2024[27]. - Earnings before income taxes decreased by 5.6% to $230,489 thousand in Q2 2025 compared to $244,139 thousand in Q2 2024[27]. Cash Flow and Capital Expenditures - Cash and cash equivalents at the end of the period were $669,688, down from $741,881 at the beginning of the year, a decrease of 9.7%[25]. - Capital expenditures for the quarter were $75 million, with a target for fiscal 2025 set between $275 million and $300 million[17]. - Net cash provided by operating activities for the six months ended April 27, 2025, was $365,646, down from $640,127 in the same period last year, a decline of 42.9%[26]. Dividends and Shareholder Returns - The company returned approximately $159 million to stockholders through dividends during the quarter[17]. - Dividends declared per share increased to $0.2900 from $0.2825 in the same quarter last year, representing a growth of 6.0%[24]. Segment Performance - The Applegate brand saw consumption growth outpacing the total edible category, while Jennie-O ground turkey experienced notable retail sales growth[10][11]. - The international segment achieved double-digit volume and net sales growth, particularly in the China market, driven by strong shipments of refrigerated products[13]. - The Planters brand showed sequential improvement in distribution and overall retail sales, reflecting its strength in the marketplace[10]. - Segment profit for Retail increased by 3.6% to $137,135 thousand in Q2 2025, while Foodservice segment profit decreased by 5.8% to $140,633 thousand[27]. - International segment volume grew by 8.9% to 79,518 lbs in Q2 2025, with net sales increasing by 7.0% to $178,533 thousand[27]. - Total segment profit decreased by 2.9% to $296,175 thousand in Q2 2025 compared to $304,903 thousand in Q2 2024[27]. Strategic Initiatives - Hormel Foods expects to see T&M initiative benefits in the range of $100 million to $150 million year over year[6]. - The company initiated a multi-year Transform and Modernize (T&M) initiative to optimize supply chain and portfolio, excluding non-recurring costs from financial performance measures[29]. - The Transform and Modernize initiative is expected to incur estimated charges of $46 million to $52 million in fiscal 2025[42]. - The company sold Mountain Prairie, LLC, resulting in a one-time loss not reflective of ongoing operations[30].

Core Insights - Hormel Foods' summer internship program is recognized as a launchpad for students' careers, with over 70% of interns transitioning to full-time roles within the company [1][3] - The program welcomes over 95 students from 50 colleges and universities, providing three months of hands-on business experience [1][2] Company Overview - Hormel Foods Corporation, based in Austin, Minnesota, generates approximately $12 billion in annual revenue and operates in over 80 countries [5] - The company is a member of the S&P 500 Index and has received multiple accolades for its corporate responsibility and workplace environment [5] Internship Program Details - The internship program is designed to immerse students in real business scenarios across various functional areas, including sales, food science, engineering, and marketing [3][4] - Interns work alongside experienced professionals, contributing to meaningful projects and gaining insights into different career paths [4] Recognition and Awards - Hormel Foods' internship program has been consistently recognized as one of the best in the nation by Vault, receiving awards for excellence in engineering, sales, marketing, and communications [4]

Core Viewpoint - Wall Street analysts forecast a quarterly earnings per share (EPS) of $0.35 for Hormel Foods, indicating a year-over-year decline of 7.9%, while revenues are expected to reach $2.9 billion, reflecting a slight increase of 0.6% compared to the previous year [1] Earnings Estimates - Prior to earnings announcements, revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock [2] - Empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [2] Key Metrics Projections - Analysts estimate 'Net Sales- Retail' to be $1.77 billion, a decrease of 0.8% from the prior-year quarter [4] - 'Net Sales- International' is projected to reach $178.43 million, representing a year-over-year increase of 7% [4] - The consensus estimate for 'Net Sales- Foodservice' stands at $953.29 million, indicating a year-over-year increase of 2.3% [4] Segment Profit Estimates - 'Segment Profit- Foodservice' is projected at $147.62 million, down from $149.30 million in the same quarter last year [5] - 'Segment Profit- International' is expected to be $23.85 million, compared to $23.20 million a year ago [5] - 'Segment Profit- Retail' is estimated at $112.33 million, down from $132.40 million in the previous year [6] Stock Performance - Over the past month, Hormel shares have returned -2.5%, while the Zacks S&P 500 composite has increased by 10.7% [6] - Currently, Hormel Foods carries a Zacks Rank 4 (Sell), suggesting potential underperformance in the near future [6]

一方面，国家卫生健康委员会表示，将实施"体重管理年"3年行动，普及健康生活方式。慢性病防控已 上升为国家战略，这也推动了食品行业加速向 "轻负担"方向迭代。另一方面，亿滋国际发布的《2024 年全球零食现状报告》显示，在这个健康化趋势明显的时代，还有73%的人"宁愿吃一小份令人愉悦的 零食，也不愿吃一大份低脂/低糖的替代品。" 近日，在接受第一财经记者采访时，荷美尔亚太区总裁顾海江表示："疫情前后的市场环境是完全不同 的。疫情前只要有新亮点，消费者就愿意买单。但是疫情后消费者的要求变高了，不但要有品质、有品 牌，还要有好的价格。所以我认为，疫情以后，更需要拿出更贴近当下消费者的一些新的产品，消费者 才愿意买单。" 在好吃和健康之间找平衡点并不容易。 从基础原料到配方设计，休闲食品行业正与健康理念展开全面较量，特别是后疫情时代，消费者的需求 在不断变化，变得"既要又要"，在想要味蕾满足的同时还能保持健康，因此，当下零食品牌们的生意不 是那么好做。 "要找到中间一个点，且不断地去打磨这个点，然后让消费者能够感受到这个产品的确是比之前其他产 品更健康一点。"顾海江举例，"比如说我们的鸡肉单片午餐肉，此前一般午餐肉基 ...