For the quarter ended October 2025, Hormel Foods (HRL) reported revenue of $3.19 billion, up 1.5% over the same period last year. EPS came in at $0.32, compared to $0.42 in the year-ago quarter.The reported revenue represents a surprise of -0.55% over the Zacks Consensus Estimate of $3.2 billion. With the consensus EPS estimate being $0.30, the EPS surprise was +6.67%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expec ...

Hormel Foods (NYSE:HRL) Q4 2025 Earnings Call December 04, 2025 09:00 AM ET Company ParticipantsJeff Ettinger - Interim CEOPooran Sharma - Managing DirectorPaul Kuehneman - Interim CFO and ControllerHeather Jones - FounderLeah Jordan - VP of Equity ResearchErica Eiler - Associate Equity ResearchMax Gumport - Director of Equity ResearchJohn Ghingo - PresidentJess Blomberg - Director of Investor RelationsBen Theurer - Managing DirectorYasmin Deswandhy - Equity Research AssociateConference Call ParticipantsTom ...

Hormel Foods (NYSE:HRL) Q4 2025 Earnings Call December 04, 2025 09:00 AM ET Company ParticipantsJeff Ettinger - Interim CEOPooran Sharma - Managing DirectorPaul Kuehneman - Interim CFO and ControllerYasmine Deswandhy - Equity Research AssociateHeather Jones - FounderLeah Jordan - VP of Equity ResearchErica Eiler - Associate Equity ResearchMax Gumport - Director of Equity ResearchJohn Ghingo - PresidentJess Blomberg - Director of Investor RelationsBen Theurer - Managing DirectorConference Call ParticipantsTo ...

Financial Data and Key Metrics Changes - For fiscal 2025, net sales exceeded $12 billion, representing a 2% organic growth over the prior year, despite falling short of earnings goals [5][12] - Operating income for fiscal 2025 was $719 million, with an adjusted operating income of just over $1 billion, resulting in an operating margin of 5.9% and an adjusted operating margin of 8.4% [16] - Diluted EPS for the full year was $0.87, with adjusted diluted EPS at $1.37; for the fourth quarter, diluted loss per share was $0.10, while adjusted diluted EPS was $0.32 [17] Business Line Data and Key Metrics Changes - The retail segment faced profitability pressures due to heightened commodity costs, but leading brands like Jennie-O and SPAM maintained strong market positions [6][8] - The foodservice segment outperformed the broader industry, leveraging direct sales and innovation, although it faced challenges from traffic declines and higher input costs [6][8] - The international segment's performance varied, with strong contributions from China but challenges in Brazil impacting overall growth objectives [8][9] Market Data and Key Metrics Changes - The pork market saw a 25% increase in pork bellies and a 10% rise in pork cutouts, while beef remained a significant inflationary pressure throughout the year [12][13] - Turkey supply constraints are expected to continue into the first half of 2026 due to avian illnesses affecting the supply chain [13][14] - The Planters brand experienced a 12% increase in dollar consumption and a 6% increase in volume consumption, indicating recovery in the snack category [58] Company Strategy and Development Direction - The company aims to focus on a protein-centric portfolio, emphasizing consumer needs and expanding brand capabilities to drive growth [20][21] - Strategic priorities for 2026 include consumer obsession, breaking brand boundaries, and becoming future-ready through portfolio reshaping and technological advancements [20][28] - The Transform and Modernize initiative will continue to support margin expansion and operational efficiency [34][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging fiscal 2025 but expressed confidence in returning to growth in fiscal 2026, targeting organic net sales growth of 1%-4% and adjusted operating income growth of 4%-10% [32][33] - The consumer environment remains strained, with expectations of continued value-seeking behavior, impacting demand in both retail and foodservice channels [72] - Management highlighted the importance of agility in responding to market volatility and refining processes for better commodity risk management [70] Other Important Information - The company returned a record $633 million to shareholders in dividends, marking 60 consecutive years of dividend increases [18] - A corporate restructuring resulted in a reduction of approximately 250 positions, aimed at streamlining operations and supporting long-term growth [9][51] Q&A Session Summary Question: Can you unpack guidance further and key factors to consider? - Management expects organic net sales growth of 1%-4% and adjusted operating income growth of 4%-10%, driven by pricing actions and enhanced marketing support [39][40] Question: What is the status of portfolio reshaping? - Portfolio reshaping is an ongoing strategic effort to simplify operations and focus on sustainable long-term growth, including exiting non-strategic businesses [42][43] Question: What are the expectations for turkey markets? - Turkey remains a critical business, with expectations for elevated whole bird prices throughout the year, but ground turkey continues to perform well [46][49] Question: What are the expected savings from restructuring? - The restructuring is expected to deliver gross savings in the range of two to three times the expected cost to implement, with a quick payback within the first 12 months [51][52] Question: How is the Planters brand performing? - Planters is back in growth mode, with a 12% increase in dollar consumption and a 13% increase in distribution, although profit recovery is impacted by mix shifts [57][58] Question: What is the outlook for the Brazil venture? - The Brazil venture is under review, with ongoing assessments of the international portfolio to determine strategic fit and performance [62][64] Question: How does the consumer environment factor into the outlook? - The consumer environment is expected to remain challenging, with continued value-seeking behavior influencing demand across channels [72][73]

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Fiscal Year 2025 Performance - The company delivered strong top-line performance in fiscal year 2025, marked by four consecutive quarters of organic net sales growth[6, 13] - Net sales reached $12 billion, with Retail contributing 62%, Foodservice 32%, and International 6%[16] - The company returned $633 million to shareholders through dividends in fiscal year 2025[22] Fiscal Year 2026 Outlook - The company projects net sales between $122 billion and $125 billion for fiscal year 2026[28] - The company anticipates organic net sales growth of 1% to 4% in fiscal year 2026[30] - Adjusted operating income is projected to grow by 4% to 10%, reaching between $106 billion and $112 billion[30] - Adjusted diluted earnings per share are expected to be in the range of $143 to $151[28] Strategic Initiatives - The Transform and Modernize initiative contributed over $120 million in value in 2025[18] - The company is focused on consumer obsession, expanding beyond boundaries, and becoming future-ready to reshape earnings trajectory[25]

Core Viewpoint - Hormel Foods reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, but down from $0.42 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +6.67%, while the previous quarter saw a surprise of -14.63% with actual earnings of $0.35 compared to an expected $0.41 [2] - Hormel's revenues for the quarter were $3.19 billion, slightly missing the Zacks Consensus Estimate by 0.55%, and up from $3.14 billion year-over-year [3] - Over the last four quarters, Hormel has surpassed consensus EPS estimates only once and has topped revenue estimates twice [2][3] Stock Performance - Hormel shares have declined approximately 25.8% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $3.08 billion, and for the current fiscal year, it is $1.40 on revenues of $12.43 billion [8] - The outlook for the Food - Meat Products industry, where Hormel operates, is currently in the bottom 34% of Zacks industries, which may negatively impact stock performance [9]

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Core Insights - Hormel Foods reported higher sales in its fiscal fourth quarter, indicating a positive trend in revenue generation despite challenges [1] - The company experienced a loss during the quarter, highlighting ongoing profitability pressures primarily due to cost inflation [1] Financial Performance - The fiscal fourth quarter saw an increase in sales for Hormel Foods, but the company still faced a loss [1] - Profitability remains under pressure, which is attributed to persistent cost inflation affecting the company's financial health [1]