Core Viewpoint - Campbell Soup Company (CPB) is expected to report a decline in earnings for the quarter ending October 2025, with anticipated EPS of $0.73 and revenue of approximately $2.66 billion, reflecting a year-over-year decrease in both metrics [3]. Financial Performance - CPB has a history of exceeding earnings estimates, with an average earnings surprise of 10.54% over the past two quarters [2]. - In the most recent quarter, CPB reported an EPS of $0.62, surpassing the expected $0.57, resulting in an 8.77% surprise [2]. - The previous quarter showed a 12.31% surprise, with an EPS of $0.73 against a $0.65 estimate [2]. Earnings Estimates - Analysts predict an 18% decline in EPS compared to the same period last year, with the projected revenue indicating a 4.1% year-over-year decrease [3]. - The consensus EPS estimate has been revised downward by 0.5% over the past month, reflecting a reassessment of initial projections [4]. Financial Ratios - CPB's financial metrics include a price-to-earnings (P/E) ratio of 14.51 and a price-to-sales ratio of 0.85 [5]. - The enterprise value to sales ratio is 1.54, and the enterprise value to operating cash flow ratio is 13.84 [5]. - The company's debt-to-equity ratio stands at 1.85, with a current ratio of 0.77, indicating its ability to cover short-term liabilities [5].

Market Overview - U.S. equities are showing mixed to positive sentiment as investors assess economic data and anticipate a Federal Reserve meeting next week [1] - Major U.S. stock indexes exhibit varied movements, with the S&P 500 and Nasdaq showing upward trends, while the Dow Jones hovers around flat [2] - S&P 500 futures are up 0.3%, Dow futures increase 0.1%, and Nasdaq futures rise 0.4%, indicating cautious optimism in global markets [3] Federal Reserve and Economic Data - The Federal Reserve's final FOMC meeting of 2025 is scheduled for December 9th and 10th, with an 87% probability of a 25-basis-point interest rate cut anticipated [4] - The release of the Personal Consumption Expenditures (PCE) price index for September 2025 is expected to provide insights into inflation and its impact on the Fed's decision [5] - Upcoming economic releases include the Job Openings and Labor Turnover Survey (JOLTS) on December 9th and the Consumer Price Index (CPI) around December 12th [6] Corporate News and Stock Movements - Netflix is acquiring Warner Bros. Discovery for $82.7 billion, impacting its stock performance [7] - Ulta Beauty's stock surged by 7% after reporting stronger-than-expected earnings and raising its sales outlook [7] - HP Enterprise's stock dropped following disappointing quarterly results and a subdued outlook [7] - Dollar General shares rose over 14% after boosting its full-year comparable sales forecast [12] - Meta Platforms' stock increased by over 3% after announcing plans to cut the metaverse group's budget by up to 30% [12] - Hormel Foods reported stronger-than-expected fourth-quarter earnings, leading to a stock rise of over 3% [12] - Science Applications International's stock closed up over 16% after reporting strong Q3 adjusted EPS and raising its full-year adjusted EPS estimate [12] Labor Market Insights - Initial jobless claims fell to 191,000 for the week ending November 29th, a decrease of 27,000, indicating a resilient employment situation [8]

Core Points - AS PRFoods' subsidiary Saaremere Kala AS has signed an agreement to sell its 100% shareholding in Saare Kala Tootmine OÜ to Latvian company Brīvais Vilnis A/S, requiring shareholder approval for completion [1][5][31] - The transaction aligns with AS PRFoods' debt restructuring objectives, aiming to sell core assets within a three-year period to distribute proceeds among creditors [2] - The sale price for the shareholding is set at EUR 2,000,000, with additional claims from shareholder loans and an inventory loan also being transferred [11][20] Transaction Details - The sale is part of a broader strategy to manage debt and is facilitated by financial advisor Oaklins Estonia OÜ [2] - The transaction is not classified as a related party transaction, as the ultimate beneficiaries of the buyer have no interests in AS PRFoods [3] - The management board of AS PRFoods has no personal interests in the transaction, and Timo Pärn will remain on SKT's management board post-sale [4] Financial Implications - The transaction is expected to generate extraordinary income of EUR 211,900.77 for AS PRFoods in the financial year 2025/2026, despite an unconsolidated net loss of EUR 2,204,569.26 [13][14] - SKT has received intra-group loans totaling EUR 1,539,294.53, with accrued interest of EUR 117,024.62 as of December 4, 2025 [9][19] - An inventory loan of EUR 200,000 has also been granted to SKT, with potential for an additional EUR 100,000 [10][20] Preconditions and Approvals - The transaction requires approval from AS PRFoods' general meeting of shareholders, with voting to occur without a physical meeting [5][28] - Preconditions for the transfer include the fulfillment of certain conditions by January 31, 2026, or the right to withdraw from the agreement [6] - The sales agreement includes stipulations for the transfer of claims related to shareholder loans and inventory loans upon receipt of the sales price [7][12] Shareholder Information - The management board proposes several resolutions for shareholder approval, including the sale of SKT's shareholding and the approval of the annual report for the financial year [31][32] - The net profit for the period from July 1, 2024, to June 30, 2025, is reported at EUR 7,338,801.33, with plans for profit allocation [33] - Shareholders can cast their votes digitally or via paper ballots, with specific instructions provided for the voting process [29][30]

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].

Core Insights - Hormel Foods reported revenue of $3.19 billion for the quarter ended October 2025, reflecting a 1.5% increase year-over-year, but a slight miss of 0.55% against the Zacks Consensus Estimate of $3.2 billion [1] - The company's EPS was $0.32, down from $0.42 in the same quarter last year, but exceeded the consensus estimate of $0.30 by 6.67% [1] Revenue Breakdown - Retail net sales were $1.92 billion, slightly below the estimated $1.95 billion, marking a year-over-year increase of 0.8% [4] - International net sales totaled $174.65 million, falling short of the $188.17 million estimate, representing a year-over-year decline of 5.6% [4] - Foodservice net sales reached $1.09 billion, surpassing the $1.07 billion estimate, with a year-over-year growth of 4% [4] Segment Performance - Foodservice segment profit was $134.4 million, exceeding the average estimate of $123.02 million [4] - International segment profit reported a loss of $138.61 million, significantly below the estimated profit of $21.78 million [4] - Retail segment profit was $46.4 million, which was also below the average estimate of $103.48 million [4] Stock Performance - Hormel's shares have returned +8% over the past month, outperforming the Zacks S&P 500 composite's +0.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Economic Indicators - September factory orders are expected to rise by +0.3% month-over-month [1] - September personal spending and personal income are both expected to increase by +0.3% month-over-month [1] - The September core PCE price index is anticipated to climb by +0.2% month-over-month and +2.8% year-over-year [1] - The University of Michigan's December consumer sentiment index is expected to rise by +1.0 to 52.0 [1] Labor Market - US weekly initial unemployment claims fell by -27,000 to a 3-year low of 191,000, contrary to expectations of an increase to 220,000 [3] - November Challenger job cuts rose by +23.5% year-over-year to 71,321, which is the highest for November in three years but lower than the expected +48.0% year-over-year increase [3] Corporate Earnings - 83% of S&P 500 companies exceeded earnings forecasts in Q3, marking the best quarter since 2021, with earnings rising by +14.6%, significantly above the expected +7.2% year-over-year [7] - Dollar General's Q3 net sales reached $10.65 billion, surpassing the consensus of $10.62 billion, and the company raised its 2026 net sales forecast to +4.7% to +4.9% [13] - Hormel Foods reported Q4 adjusted EPS of 32 cents, exceeding the consensus of 30 cents, and forecasted 2026 adjusted EPS of $1.43 to $1.51 [14] - Five Below reported Q3 net sales of $1.04 billion, stronger than the consensus of $975.3 million, and raised its 2025 net sales forecast to $4.62 billion to $4.65 billion [15] Stock Market Movements - Dollar General's stock rose more than +8% following its positive earnings report [13] - Meta Platforms increased by more than +3% after announcing budget cuts for its metaverse group [14] - Micron Technology led losses in the Nasdaq 100, down more than -3% [12] - Kroger's stock fell more than -5% after reporting Q3 sales of $33.9 billion, below the consensus of $34.2 billion [18]

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]

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 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]