Core Viewpoint - Hormel Foods Corporation reported solid top-line performance for the first quarter of fiscal 2025, reaffirming its expectations for net sales and adjusted diluted earnings per share for the fiscal year [1][3][4]. Financial Performance - Net sales for the first quarter were $2.99 billion, with organic net sales up 1% compared to the previous year [5][6]. - Operating income was $228 million, with an adjusted operating income of $254 million, resulting in an operating margin of 7.6% and an adjusted operating margin of 8.5% [5][6]. - Diluted earnings per share were $0.31, while adjusted diluted earnings per share were $0.35 [5][6]. - The effective tax rate for the quarter was 21.8%, down from 23.4% in the previous year [19]. Fiscal 2025 Outlook - The company expects net sales for fiscal 2025 to be between $11.9 billion and $12.2 billion [4][6]. - Diluted earnings per share expectations have been updated to a range of $1.49 to $1.63, while adjusted diluted earnings per share remain between $1.58 and $1.72 [6][41]. - The company anticipates year-over-year benefits from the Transform and Modernize initiative in the range of $100 million to $150 million [6]. Segment Highlights Retail - The Retail segment saw a decline in net sales of 1% to $1.89 billion, with a volume decrease of 4% [10][29]. - Key brands such as SPAM®, Applegate®, and Jennie-O® contributed to growth, although snack nuts sales were impacted by production disruptions [10][11]. Foodservice - The Foodservice segment achieved net sales of $930 million, up 1.9%, with strong performance in premium prepared proteins and breakfast sausage categories [13][29]. - Segment profit decreased due to margin pressures, primarily in non-core businesses [13]. International - The International segment experienced strong growth in China, with net sales of $168 million, although this was offset by softness in Brazil [14][29]. - The company focused on expanding its geographical distribution and enhancing its product offerings in the China market [14]. Strategic Initiatives - Hormel Foods is executing its Transform and Modernize initiative, which includes opening a new distribution center in Memphis to enhance inventory flow [11][31]. - The company divested its last owned sow farm operation to reduce commodity exposure and simplify its portfolio [11][32]. Advertising and Community Engagement - Advertising investments for the quarter were $43 million, with expectations for an increase in full-year advertising expenses compared to the prior year [19]. - The company supported community hunger relief initiatives by donating over 30,000 turkeys during the holiday season [11].

Financial Performance - Hormel Foods reported net sales of $2.99 billion for Q1 fiscal 2025, with organic net sales up 1% compared to the previous year[4]. - The company reaffirmed its fiscal 2025 net sales outlook of $11.9 billion to $12.2 billion and adjusted diluted earnings per share expectations of $1.58 to $1.72[5]. - Diluted earnings per share for Q1 were $0.31, with adjusted diluted earnings per share at $0.35, reflecting a decrease from the previous year[4]. - Net sales for the quarter ended January 26, 2025, were $2,988,813, a decrease of 0.3% compared to $2,996,911 for the same quarter in 2024[24]. - Gross profit for the quarter was $475,232, down from $508,733 in the prior year, reflecting a decrease of 6.6%[24]. - Net earnings attributable to Hormel Foods Corporation for the quarter were $170,575, a decline of 22.1% from $218,863 in the same quarter last year[24]. - Adjusted net earnings attributable to Hormel Foods Corporation (Non-GAAP) for the quarter were $190,687, down from $226,763, reflecting a decline of 16.0%[36]. - The diluted earnings per share (GAAP) decreased to $0.31 from $0.40, representing a decline of 22.5% year-over-year[38]. - The company's fiscal 2025 outlook for adjusted operating income is projected to be between $1,175 million and $1,275 million[43]. - Hormel Foods expects diluted earnings per share (Non-GAAP) for fiscal 2025 to range from $1.58 to $1.72[43]. Segment Performance - The company experienced a 4% decline in volume and a 1% decrease in net sales within the Retail segment, with segment profit down 20%[9]. - In the Foodservice segment, organic volume and net sales growth were driven by strong performance in premium prepared proteins, turkey, and breakfast sausage categories[11]. - International segment growth was supported by strong sales in China, with significant contributions from SPAM and Skippy products, despite softness in Brazil[12]. - Segment profit for retail decreased by 20.3% to $119,147, while foodservice profit decreased by 7.6% to $138,826[27]. - The company reported a 1.6% increase in organic net sales for the foodservice segment, despite a 3.7% decline in retail[40]. Tax and Expenses - The effective tax rate for the quarter was 21.8%, down from 23.4% in the prior year, with expectations for the full year between 22.0% and 23.0%[16]. - The effective tax rate for the quarter was 21.8%, compared to 23.4% in the prior year[24]. - Advertising investments for the quarter were $43 million, with expectations for an increase in full-year advertising expenses compared to the prior year[16]. - Hormel Foods' SG&A as a percent of net sales (GAAP) increased to 8.8% from 8.0% year-over-year[38]. Cash Flow and Investments - Cash and cash equivalents increased to $840,398 from $741,881 at the end of the previous quarter[25]. - The company reported a net cash provided by operating activities of $309,206, down from $403,980 in the prior year[26]. - Hormel Foods plans to invest $275 million to $300 million in capital expenditures for fiscal 2025, with $72 million spent in Q1[16]. Strategic Initiatives - Hormel Foods Corporation is undergoing a multi-year Transform and Modernize initiative, which includes non-recurring costs that are excluded from adjusted performance measures[29]. - The company expects year-over-year benefits from its Transform and Modernize initiative in the range of $100 million to $150 million[5]. - The Transform and Modernize initiative is expected to incur estimated charges of $46 million to $52 million in fiscal 2025[43].

Core Viewpoint - Hormel Foods Corporation (HRL) is expected to report a decline in both revenue and earnings for the first quarter of fiscal 2025, with earnings estimated at 38 cents per share, reflecting a 7.3% decrease year-over-year, and revenues projected at $2.9 billion, indicating a nearly 2% decline from the previous year [1][3]. Financial Performance Expectations - The Zacks Consensus Estimate for quarterly earnings has decreased by a penny in the last 30 days, while the revenue estimate remains at $2.9 billion [1]. - Hormel Foods has a trailing four-quarter earnings surprise average of 7.4% [1]. Cost and Operational Challenges - The company has been facing rising selling, general and administrative (SG&A) expenses, attributed to increased employee-related costs and expenses related to its Transform and Modernize (T&M) initiative [3]. - Management anticipates further increases in SG&A expenses and advertising spending for fiscal 2025, which may negatively impact profitability [3]. - A production disruption at the Planters facility in Suffolk, VA, has affected the company's ability to meet demand for its snack nuts portfolio, leading to expected near-term commercial impacts and increased costs [4]. Earnings Impact - Hormel Foods expects a negative earnings per share (EPS) impact of 4-5 cents in the upcoming quarter, primarily due to lower year-over-year whole bird prices and the production disruption in Suffolk [4]. Strategic Initiatives - Despite the challenges, Hormel Foods remains committed to innovation, which has strengthened its market position [5]. - The T&M initiative aims to enhance production efficiency and supply-chain management, while growing demand for Foodservice products has provided some relief [5]. Earnings Prediction - The company's earnings model suggests a potential earnings beat, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [6].

Core Insights - Hormel Foods (HRL) is expected to report quarterly earnings of $0.38 per share, reflecting a year-over-year decline of 7.3% [1] - Projected revenues are anticipated to be $2.94 billion, down 2% from the same quarter last year [1] - The consensus EPS estimate has been revised downward by 3.4% in the past 30 days, indicating a reassessment by analysts [1][2] Revenue Estimates - The consensus estimate for 'Net Sales- Retail' is $1.83 billion, indicating a decrease of 4.3% from the prior-year quarter [4] - 'Net Sales- International' is expected to reach $180.75 million, reflecting an increase of 4.8% year-over-year [4] - 'Net Sales- Foodservice' is projected at $912.20 million, suggesting a slight decline of 0.1% year-over-year [4] Segment Profit Estimates - 'Segment Profit- Foodservice' is forecasted to be $149.89 million, slightly down from $150.16 million reported in the same quarter last year [5] - 'Segment Profit- International' is expected to be $20.70 million, compared to $20.03 million in the previous year [5] - 'Segment Profit- Retail' is projected at $130.78 million, down from $149.51 million year-over-year [6] Stock Performance - Hormel shares have shown a return of -4% over the past month, contrasting with the Zacks S&P 500 composite's -0.5% change [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [6]

Core Viewpoint - Hormel Foods (HRL) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the upcoming earnings report expected to significantly influence its stock price [1][2]. Earnings Expectations - The consensus estimate for Hormel's quarterly earnings is $0.38 per share, reflecting a year-over-year decrease of 7.3%. Revenues are projected to be $2.94 billion, down 2% from the previous year [3]. - The consensus EPS estimate has been revised 3.42% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Hormel is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.66%, indicating a likelihood of beating the consensus EPS estimate [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - Hormel has beaten consensus EPS estimates three out of the last four quarters, although it delivered a surprise of -2.33% in the last reported quarter [12][13]. Conclusion - Hormel is viewed as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [16].

Group 1 - The Consumer Staples sector has increased by 3.6% at the start of 2025, but it has underperformed compared to the S&P 500 [1] - Despite strong performances from companies like Walmart and Costco, many well-known Consumer Staples brands are lagging behind [1]

Product Launch - Hormel Foods has launched the HORMEL GATHERINGS® Bold and Spicy Tray, featuring jalapeño pepperoni and spicy salami, aimed at spice lovers and snack enthusiasts [1][2] - The jalapeño pepperoni is infused with the bold heat of jalapeño peppers, while the spicy salami includes flavors of chorizo, garlic, paprika, and peppers, creating a unique snacking experience [2] Market Trends - The popularity of spicy food is on the rise among consumers, and the new tray is designed to meet this growing trend [2] - The product is positioned as a convenient option for gatherings, appealing to consumers looking for bold flavors and spice [2] Availability - The HORMEL GATHERINGS® Bold and Spicy Tray will be available at local super centers, with plans for nationwide expansion this spring [2] Company Overview - Hormel Foods Corporation, based in Austin, Minnesota, generates approximately $12 billion in annual revenue and operates in over 80 countries [4] - The company is recognized for its diverse brand portfolio, including PLANTERS®, SKIPPY®, SPAM®, and more than 30 other brands, and has received numerous accolades for corporate responsibility [4]

AUSTIN, Minn., Feb. 4, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, invites interested parties to participate in a webcast and conference call with Jim Snee, president and chief executive officer; Jacinth Smiley, executive vice president and chief financial officer; and John Ghingo, executive vice president, Retail; to discuss the Company's first quarter financial results. The Company will issue its earnings release before the markets open on Thursday ...

Lynn Egner to assume the role of Vice President of Foodservice sales Natosha Walsh moves to Vice President of Retail sales – West AUSTIN, Minn., Feb. 3, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE:HRL), a Fortune 500 global branded food company, today announced sales executive moves for its Retail and Foodservice business segments. Lynn Egner will move to the role of vice president of Foodservice following David Weber's recent advancement to group vice president, Foodservice. Natosha Walsh will move ...

AUSTIN, Minn., Jan. 30, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, announced the upcoming retirement of Mark Ourada, group vice president, Foodservice, following 37 years of dedicated service and leadership. Throughout his nearly four-decade-long career with the company, Ourada has played an active role in the successful development and evolution of the $3.8 billion Foodservice business segment. He was also instrumental in the PLANTERS® brand integr ...