Financial Performance - Walmart accounted for 15.6% of consolidated gross sales less returns and allowances during fiscal 2025, with the top five customers representing approximately 38%[29] - The company reported a revenue of $1.5 billion for Q3 2023, representing a 15% year-over-year increase[217] - The company provided guidance for Q4 2023, expecting revenue to be between $1.6 billion and $1.8 billion, indicating a potential growth of 7% to 20%[217] - The gross margin for Q3 2023 was reported at 45%, a slight increase from 43% in Q2 2023[217] Debt and Assets - The Company's long-term debt had a fair value of $2.6 billion as of October 26, 2025, compared to $2.5 billion as of October 27, 2024[213] - The Company's net asset position in foreign currencies was $0.8 billion as of October 26, 2025, down from $1.2 billion as of October 27, 2024[214] - The balance of corporate-owned life insurance policies classified as trading securities totaled $219.2 million as of October 26, 2025, compared to $209.7 million as of October 27, 2024[215] Employee and Safety Metrics - Approximately 20% of the Company's employees were covered by collective bargaining agreements as of October 26, 2025[20] - The Company completed approximately 1,200 safety assessments each month during fiscal 2025[26] - As of October 26, 2025, approximately 50% of the Company's team members had five or more years of service[23] Innovation and R&D - The Company has thirteen U.S.-granted and six foreign-granted patents as of October 26, 2025[32] - Investment in R&D increased by 25% year-over-year, totaling $300 million, focusing on innovative technologies[217] - New product launch scheduled for Q1 2024, anticipated to contribute an additional $200 million in revenue[217] Market and Customer Metrics - User base grew to 10 million active users, a 20% increase compared to the previous quarter[217] - Customer retention rate improved to 85%, up from 80% in the previous quarter[217] - Market expansion efforts led to a 30% increase in sales in the Asia-Pacific region[217] - The company plans to enter the European market by mid-2024, targeting a revenue contribution of $100 million in the first year[217] Acquisitions and Investments - The company completed an acquisition of a tech startup for $500 million, expected to enhance product offerings[217] Commodity and Risk Management - The fair value of the Company's cash flow commodity contracts was $5.5 million as of October 26, 2025, compared to $(5.9) million as of October 27, 2024[212] - The Company employs hedging programs to manage commodity price risk, utilizing futures, swaps, and options contracts[212]

Core Viewpoint - Hormel Foods Corporation reported fourth-quarter results that exceeded profit expectations but fell short on revenue, while providing a positive outlook for the upcoming year despite ongoing cost pressures [1]. Financial Performance - The company reported fourth-quarter adjusted earnings per share of 32 cents, surpassing the analyst consensus estimate of 30 cents [2]. - Quarterly sales amounted to $3.185 billion, which missed the Street view of $3.228 billion [2]. Management Commentary - Jeff Ettinger, interim CEO, noted solid top-line growth driven by brand relevance and a strong value-added portfolio, but acknowledged challenges in profitability due to persistent input cost inflation [3]. - The company anticipates fiscal 2026 adjusted earnings of $1.43 to $1.51 per share, exceeding the analyst projection of $1.36 [3]. - Hormel Foods forecasts sales between $12.2 billion and $12.5 billion, compared to the analyst estimate of $12.148 billion [3]. Stock Performance and Analyst Ratings - Following the earnings announcement, Hormel Foods shares rose 1.1% to $24.42 [4]. - Analysts adjusted their price targets for Hormel Foods, with B of A Securities maintaining a Neutral rating and raising the target from $25 to $26, JP Morgan maintaining an Overweight rating and raising the target from $27 to $28, and Piper Sandler maintaining a Neutral rating and raising the target from $25 to $26 [6].

Core Viewpoint - Hormel Foods Corporation reported fourth-quarter results that exceeded profit expectations but fell short on revenue, while providing a positive outlook for the upcoming year despite ongoing cost pressures [1]. Financial Performance - The company reported fourth-quarter adjusted earnings per share of 32 cents, surpassing the analyst consensus estimate of 30 cents [2]. - Quarterly sales amounted to $3.185 billion, which was below the expected $3.228 billion [2]. Management Commentary - Jeff Ettinger, interim CEO, noted solid top-line growth driven by brand relevance and a strong value-added portfolio, but acknowledged challenges in profitability due to persistent input cost inflation [3]. - The company anticipates fiscal 2026 adjusted earnings of $1.43 to $1.51 per share, exceeding the analyst projection of $1.36 [3]. - Hormel Foods forecasts sales between $12.2 billion and $12.5 billion, compared to the analyst estimate of $12.148 billion [3]. Stock Performance - Following the earnings announcement, Hormel Foods shares increased by 1.1%, trading at $24.42 [4]. Analyst Ratings and Price Targets - B of A Securities analyst Peter Galbo maintained a Neutral rating and raised the price target from $25 to $26 [6]. - JP Morgan analyst Thomas Palmer maintained an Overweight rating and increased the price target from $27 to $28 [6]. - Piper Sandler analyst Michael Lavery also maintained a Neutral rating and raised the price target from $25 to $26 [6].

Market Overview - U.S. stocks closed near unchanged as investors assessed labor market reports and economic data, with expectations for a Federal Reserve interest rate cut next week [6][7] - The Dow Jones Industrial Average fell by 31.96 points (0.07%) to 47,850.94, while the S&P 500 gained 7.40 points (0.11%) to 6,857.12, and the Nasdaq Composite increased by 51.04 points (0.22%) to 23,505.14 [6][7] Labor Market Indicators - Initial jobless claims dropped to their lowest level in over three years, although this decline may be influenced by the Thanksgiving holiday [6][7] - The Chicago Fed estimated the unemployment rate remained around 4.4% in November [6][7] - Markets are pricing in an 87% chance of a 25 basis point rate cut this month, up from 68.6% a month ago [6][7] Company Performance - Kroger's shares fell by 4.6% after the supermarket chain narrowed its annual sales forecast and missed quarterly sales estimates [4][7] - Dollar General's stock surged by 14% following an increase in its annual profit forecast [4][7] - Snowflake's shares tumbled by 11.4% after the company provided a fourth-quarter product revenue forecast below investor expectations [4][7] - Salesforce's stock rose by 3.7% after raising its fiscal 2026 revenue and profit forecasts, driven by strong demand for its AI platform [6][7] - Meta Platforms increased by 3.4% after reports of planned cuts to its Metaverse budget [6][7] - Hormel Foods advanced by 3.8% after forecasting annual profit above estimates [4][7] Market Activity - Advancing issues outnumbered decliners by a ratio of 1.06-to-1 on the NYSE and 1.39-to-1 on the Nasdaq [5][7] - The S&P 500 recorded 31 new 52-week highs and five new lows, while the Nasdaq Composite saw 114 new highs and 52 new lows [5][7] - U.S. exchanges had a trading volume of 15.13 billion shares, compared to the 17.98 billion average over the last 20 trading days [5][7]

Market Overview - Major U.S. stock indices remained stable, with the S&P 500 and Nasdaq rising for three consecutive days, while the Dow Jones Industrial Average fell slightly by 31.96 points, or 0.07%, closing at 47,850.94 points [2] - The labor market showed mixed signals, with initial jobless claims dropping to a three-year low of 191,000, significantly below economists' expectations of 220,000 [4] - The Chicago Fed's model estimates the unemployment rate to remain around 4.4%, indicating a resilient labor market despite some concerns [4] Company Performance - In the technology sector, Meta's stock rose by 3.43% following news of a potential 30% budget cut for its Metaverse projects, while Amazon's stock fell by 1.41% due to ongoing discussions with the U.S. Postal Service [2] - Snowflake's stock plummeted by 11.41% as its fourth-quarter product revenue guidance fell short of high growth expectations [6] - Hormel Foods saw a stock increase of 3.82% as the company projected better-than-expected annual profits, while Dollar General's stock surged by 10.5% after raising its annual guidance [7] Commodity Performance - International oil prices increased, with light crude oil for January delivery rising by $0.72 to $59.67 per barrel, a 1.22% increase, and Brent crude for February delivery up by $0.59 to $63.26, a 0.94% increase [7] - Spot gold prices slightly rose by 0.1% to $4,210.49, while COMEX gold futures increased by 0.2%, settling at $4,243.00 [7]

Core Insights - Hormel Foods Corporation's shares rose 3% intra-day following the release of fourth-quarter earnings that met expectations and a positive fiscal 2026 outlook, which mitigated concerns over significant impairment charges [1] Financial Performance - The company reported fourth-quarter adjusted earnings of $0.32 per share, aligning with analyst forecasts, while revenue increased by 1.5% year over year to $3.2 billion, slightly below the consensus estimate of $3.24 billion [2] - On a GAAP basis, Hormel recorded a quarterly loss of $0.10 per share, primarily due to $234 million in non-cash impairment charges related to a minority investment in its International segment and certain intangible assets in the Retail segment [2] Future Outlook - Hormel projected fiscal 2026 earnings between $1.43 and $1.51 per share, with revenue expectations of $12.2 billion to $12.5 billion, surpassing analyst expectations of $1.37 per share [3] Segment Performance - Organic net sales in the fourth quarter rose by 2%, with the Foodservice segment achieving notable organic growth of 6.5% [4] - However, adjusted segment profit declined across all divisions, with the Retail segment profit decreasing by 23% despite a 1% increase in sales, indicating ongoing margin pressures in that sector [4]

PresentationPaulo Castellari-PorchiaChief Executive Officer Good afternoon, everyone, and welcome. Very nice to be here. Thank you for investing the time with us today. We have today myself, Paulo Castellari, CEO of Eramet; and Abel Martins-Alexandre, the Chief Financial Officer for the company. I think I have met some of you, but I think it's still worth investing in a few words just to introduce myself. I have been with Eramet for the last 6 months, and I have been working in the industry for the last 30 ...

Core Insights - Hormel Foods Corporation reported earnings per share (EPS) of $0.32, exceeding estimates of $0.30, but down from $0.42 in the same quarter last year, indicating a need for further analysis of year-over-year performance and analyst estimates [2][6] - The company's revenue for the quarter ending October 2025 was approximately $3.19 billion, slightly below the estimated $3.22 billion, but representing a 1.5% increase from the previous year, showing resilience in a competitive market [3][6] - Strategic cost-cutting measures, increased pricing, and steady demand for turkey products are expected to drive future profits, helping to offset high input costs associated with beef and pork [4][6] Financial Metrics - Hormel's price-to-earnings (P/E) ratio is approximately 27.47, indicating investors are willing to pay $27.47 for each dollar of earnings [5] - The price-to-sales ratio is about 1.08, and the enterprise value to sales ratio is around 1.03, reflecting the company's valuation relative to its sales [5] - The current ratio of 2.47 indicates a strong ability to cover short-term liabilities with short-term assets [5]

I think it’s fair to say that the majority of food sector companies haven’t given investors much reason to celebrate this year. The explanations aren’t hard to find—consumer choices and behaviors are shifting. Part ofI’ve managed my investments since 1999, gaining perspective across multiple market cycles. With a background in Economics and ongoing CFA certification, my focus is on uncovering mispriced assets that the market has overlooked. I conduct my analyses in a way that allows me to use them myself — ...

Core Insights - Hormel Foods Corporation reported fourth-quarter fiscal 2025 results with a year-over-year increase in net sales but missed the Zacks Consensus Estimate. Adjusted earnings per share (EPS) of 32 cents beat the consensus estimate of 30 cents, although it declined from 42 cents in the previous year [1][10]. Financial Performance - Net sales reached $3,185.7 million, a 1.5% increase from $3,138.1 million in the same quarter last year, but fell short of the consensus estimate of $3,203 million. Volumes decreased by 1.8% [2]. - Gross profit was $444.8 million, down from $521.2 million in the year-ago quarter. Adjusted selling, general and administrative expenses were $220.2 million, a decrease from $226.1 million [3]. - Adjusted operating income was $245.3 million, down from $307.9 million year-over-year, with an adjusted operating margin of 7.7%, down from 9.8% [3]. Segment Performance - Retail unit net sales increased by 0.8% year-over-year to $1,922.8 million, with volumes gaining 0.3%. However, this was below the consensus estimate of $1,945 million. Segment profit decreased by 69.7% due to non-cash impairment charges, with an adjusted profit decline of 23% [4][5]. - Foodservice segment net sales rose by 4% to $1,088.2 million, exceeding the consensus mark of $1,071 million. Organic net sales increased by 6%, but volumes declined by 5.4%. Segment profit declined by 12.9% due to a chicken-product recall and rising input costs [6][7]. - International unit net sales decreased by 5.6% to $174.7 million, with volumes down by 8.2%. This decline was attributed to lower fresh pork exports and competitive pressures in Brazil, partially offset by growth in SPAM and refrigerated products. The segment profit declined significantly due to a non-cash impairment related to a minority investment in Indonesia [8][9]. Future Outlook - Hormel Foods expects fiscal 2026 net sales to be between $12.2 billion and $12.5 billion, with anticipated organic net sales growth of 1% to 4%. Adjusted EPS is projected to be in the range of $1.43 to $1.51, reflecting growth of 4% to 10% [12]. - The company plans capital expenditures between $260 million and $290 million, with depreciation and amortization expenses expected to be around $280 million in fiscal 2026 [12]. Financial Health - As of the end of the quarter, Hormel Foods had cash and cash equivalents of $670.7 million and total long-term debt of $2,850.8 million. Cash flow from operations was $322.9 million, and the company returned nearly $633 million to shareholders via dividends in fiscal 2025 [11].