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]

Core Insights - The snack food industry is facing challenges in balancing taste and health, especially in the post-pandemic era where consumer demands have evolved to seek both enjoyment and health benefits [1][2] Industry Trends - The National Health Commission of China is implementing a three-year action plan for "weight management," promoting healthy lifestyles and pushing the food industry towards "light burden" products [1] - According to Mondelez International's 2024 Global Snack Status Report, 73% of consumers prefer a small portion of enjoyable snacks over a large portion of low-fat or low-sugar alternatives [1] Consumer Behavior - Post-pandemic, consumers have higher expectations for quality, branding, and pricing in snack products, as noted by Hormel's Asia Pacific President, Gu Haijiang [1] - The emotional value of snacks has become a significant consumer demand, with brands innovating flavors to meet these needs [1][2] Product Innovation - Brands are exploring new flavors and healthier options, such as Hormel's chicken-based lunch meat, which is lower in fat and higher in protein compared to traditional pork products [2] - The founder of Shiyanshi emphasizes that health and taste can coexist, with a focus on high-fiber and high-protein snacks becoming industry standards [2]

Hormel Foods Corporation (HRL) is likely to register top-line growth when it reports second-quarter fiscal 2025 earnings on May 29, before the market opens. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.9 billion, which indicates a 0.6% increase from the year-ago quarter. The consensus mark for earnings has remained unchanged in the past 30 days at 35 cents per share, which implies a 7.9% decrease from the figure reported in the year-ago quarter. HRL delivered a trailing four-quarter e ...

Industry Overview - The agriculture industry is rapidly transforming due to technological advancements and innovative solutions, driven by rising global population and climate change pressures [2] - Agricultural technology (AgTech) and food innovation are critical in addressing the demand for sustainable and efficient agricultural practices [2] AgTech Innovations - AgTech is revolutionizing food production, processing, and distribution through AI, biotechnology, and automation, leading to increased productivity and sustainability [3] - Techniques such as precision agriculture, lab-grown meat, and plant-based alternatives are reshaping the food industry [3] - Companies like Archer-Daniels-Midland Company (ADM) are adopting AgTech to optimize supply chains and enhance resource efficiency [3] Protein Alternatives - The protein landscape is shifting towards plant-based proteins, lab-grown meat, and fermented products as sustainable alternatives to traditional animal protein [4] - Companies like Beyond Meat, Inc. (BYND) are at the forefront of this shift, catering to health-conscious and environmentally aware consumers [4] - Continuous advancements in food science are making protein alternatives more accessible and affordable despite existing challenges [4] Company Strategies - Companies embracing technological innovations are positioning themselves for long-term success in a changing market [5] - Tyson Foods, Inc. (TSN) is investing in AgTech and food innovation, focusing on sustainable protein production and digital transformation [7] - Hormel Foods Corporation (HRL) is utilizing digital technology and AgTech to streamline operations and enhance food production standards [11] - Ingredion Incorporated (INGR) is a leader in providing ingredient solutions, focusing on clean-label innovation and plant-based proteins [14] Specific Company Initiatives - Tyson Foods is investing in alternative protein innovation and has partnered with companies like Future Meat Technologies to reduce the environmental impact of meat production [8] - Hormel Foods has invested $1.7 million in regenerative agriculture, promoting sustainable practices across 50,000 acres in Minnesota [11] - Ingredion is collaborating with food-tech companies to enhance food systems through sustainable solutions and is involved in regenerative agriculture to improve crop resilience [15][16]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Hormel Foods despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Hormel Foods is expected to report quarterly earnings of $0.35 per share, reflecting a year-over-year decrease of 7.9%, while revenues are projected to be $2.9 billion, an increase of 0.6% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly reassessed their initial estimates [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Hormel is lower than the consensus estimate, resulting in an Earnings ESP of -4.35%, suggesting a bearish outlook from analysts [10]. Historical Performance - In the last reported quarter, Hormel was expected to post earnings of $0.37 per share but delivered $0.35, resulting in a surprise of -5.41%. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13]. Stock Ranking - Hormel currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [11]. Market Reaction - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [14]. Investment Considerations - While Hormel does not appear to be a compelling earnings-beat candidate, investors should consider additional factors before making investment decisions [16].

Company Overview - The PLANTERS® brand, founded in 1906, has been a leading snacking solution with a diverse portfolio including peanuts, nut mixes, and seeds, and is owned by Hormel Foods Corporation since 2021 [5] - Hormel Foods Corporation, based in Austin, Minnesota, generates approximately $12 billion in annual revenue and operates in over 80 countries, with a wide range of brands including PLANTERS®, SKIPPY®, and SPAM® [6] Product Launch - The PLANTERS® x Miller High Life® Bar Nut Mix is a new limited-edition product designed to be a bold and savory snack, ideal for summer gatherings [1][2] - This product combines seasoned peanuts, almonds, Cajun-style corn sticks, pretzel sticks, rice crackers, and garlic bread sticks, creating a nostalgic yet fresh bar snack experience [2][3] Marketing and Collaboration - The collaboration between PLANTERS® and Miller High Life® celebrates over a century of partnership, with previous campaigns including co-branded merchandise and unique promotional events [3] - The Bar Nut Mix is positioned as a simple and satisfying snack that complements Miller High Life® beer, emphasizing a casual summer hangout experience [4]

Core Insights - Hormel Foods Corporation announced that Jeff Baker will become the group vice president for Retail marketing at the end of fiscal 2025, succeeding Scott Aakre [1] - Baker has been with Hormel Foods for 35 years, holding various positions in sales, product management, and marketing, demonstrating a strong track record of growth [2][3] - The company aims to evolve its brand portfolio to align with changing consumer preferences, enhance its presence in snacking and entertaining, and drive growth in its food-forward portfolio under Baker's leadership [1][3] Company Overview - Hormel Foods Corporation is a global branded food company based in Austin, Minnesota, with approximately $12 billion in annual revenue and operations in over 80 countries [3] - The company’s brand portfolio includes well-known names such as PLANTERS®, SKIPPY®, SPAM®, and HORMEL® NATURAL CHOICE®, among others [3] - Hormel Foods is recognized as a member of the S&P 500 Index and has received various accolades for corporate responsibility and community service [3]