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]

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]

Core Insights - Hormel Foods Corporation reported solid top-line growth for fiscal 2025, driven by brand relevance and a strong value-added portfolio, but faced profitability challenges due to input cost inflation and discrete items [4][6] - The company is focused on reshaping its earnings trajectory in fiscal 2026 with strategic initiatives aimed at consumer needs and operational excellence [4][5] Fiscal 2025 Results - Net sales reached $12.1 billion, with organic net sales up 2% [7] - Operating income was $719 million, with an adjusted operating income of $1,019 million [7] - The effective tax rate was 28.0%, and diluted earnings per share were $0.87, with adjusted diluted earnings per share at $1.37 [7][13] Fiscal 2026 Outlook - The company expects net sales between $12.2 billion and $12.5 billion, with organic net sales growth of 1% to 4% [6][8] - Adjusted operating income is projected to be between $1.06 billion and $1.12 billion, reflecting a growth of 4% to 10% [8] - Adjusted diluted earnings per share are anticipated to be in the range of $1.43 to $1.51, also indicating growth of 4% to 10% [8] Dividend Growth - Hormel Foods announced a 1% increase in its quarterly dividend, marking 60 years of uninterrupted dividend increases [9] Segment Highlights - Retail segment net sales growth was driven by turkey products, Planters snack nuts, and Applegate products, despite a decline in segment profit due to non-cash impairment charges [12][14] - Foodservice segment saw organic net sales growth from customized solutions and branded offerings, but faced profit declines due to a chicken-product recall and rising input costs [15] - International segment growth was led by SPAM and refrigerated products, although it faced challenges from fresh pork exports and competitive pressures in Brazil [16] Financial Position - Cash flow from operations was $845 million, with total long-term debt at $2.9 billion [7][13] - The company maintained a strong financial position with cash on hand of $671 million and inventories of $1.7 billion at fiscal year-end [13][27]

Core Insights - Hormel Foods Corporation (HRL) is expected to report a revenue increase of 2.1% year-over-year, with fourth-quarter fiscal 2025 revenues estimated at $3.2 billion [1] - The earnings consensus has decreased by 11.8% in the last 30 days to 30 cents per share, reflecting a 28.6% decline from the previous year's quarter [2] Sales Performance - Strong consumer demand for protein-focused retail brands, including SPAM, Hormel pepperoni, Jennie-O ground turkey, and Wholly Guacamole, has supported sales momentum [3] - The Zacks Consensus Estimate for the Retail segment's sales is projected at $1,945 million for the fourth quarter, up from $1,907 million in the same period last year [4] - Foodservice volumes have outperformed the broader industry, although weak traffic in convenience stores poses a concern [4][9] Cost Challenges - Input-cost inflation, particularly in pork and beef markets, has significantly impacted margins, with elevated costs continuing into early fourth quarter [5][9] - Despite targeted pricing actions, retail pricing adjustments are expected to lag, with more substantial recovery anticipated only in fiscal 2026 [6] - The Transform and Modernize initiative is yielding savings, but these are insufficient to fully offset inflationary pressures in the near term, raising profitability concerns [6][9] Earnings Outlook - Current indicators do not suggest a strong likelihood of an earnings beat for Hormel Foods, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of 0.00% [7]

Core Points - Hormel Foods Corporation announced a 1 percent increase in its quarterly dividend, raising the annualized rate to $1.17 per share, marking the 60th consecutive annual dividend increase [1] - The authorized quarterly dividend is set at 29.25 cents ($0.2925) per share, to be paid on February 17, 2026, to stockholders of record as of January 12, 2026, representing the 390th consecutive quarterly dividend [2] - Hormel Foods has maintained uninterrupted quarterly dividend payments since becoming a public company in 1928 [2] Company Overview - Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue [3] - The company’s brand portfolio includes well-known names such as Planters, Skippy, SPAM, and Jennie-O, among others, totaling over 30 brands [3] - Hormel Foods is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, recognized for its corporate responsibility and community service efforts [3]

Core Viewpoint - Hormel Foods is undergoing a restructuring process that involves cutting 250 corporate and sales jobs, which is expected to incur restructuring charges between $20 million and $25 million [1] Group 1: Company Actions - The company is reducing its workforce as part of a broader restructuring strategy [1] - Hormel Foods owns well-known brands such as Planters, Skippy, and Spam [1] Group 2: Financial Implications - The anticipated restructuring charges are estimated to be in the range of $20 million to $25 million [1]

Core Insights - Hormel Foods is planning to cut 250 corporate and sales positions as part of a corporate restructuring to align resources with strategic priorities and support future growth [1][2] - The company is focusing on areas such as technology, innovation, food safety, and quality to strengthen its overall business [2] - Hormel expects restructuring charges between $20 million and $25 million due to pension benefits, cash severance payments, stock compensation expenses, and employee benefit costs [3] Company Challenges - Hormel Foods is facing declining sales and rising costs, influenced by inflationary pressures and disruptions such as bird flu and a fire at an Arkansas peanut butter plant [4] - The company recently announced the departure of its CFO and the return of former CEO Jeff Ettinger in an interim capacity [4] Industry Context - The food and beverage industry has experienced significant job cuts in 2025 as companies adjust to slowing demand, with notable firms like Nestlé, General Mills, and Molson Coors also eliminating positions [5] - Nestlé announced plans to cut 16,000 jobs, representing about 6% of its global workforce of 277,000 [5]

Group 1: Company Overview - Hormel Foods Corporation (NYSE:HRL) is a leading American multinational manufacturer and marketer of processed food, operating in three segments: Grocery Products, Foodservice, and International [2] - The Grocery Products segment is the largest producer of manufactured meat and food products for retail sales in the U.S., featuring well-known brands such as Planters, SPAM, Skippy, Herdez, Jennie-O, and Hormel [2] Group 2: Financial Performance - Hormel Foods recently reported quarterly earnings, with analysts forecasting earnings of $0.41 per share on revenue of $2.98 billion [3] - Organic product sales increased by 6% year-on-year, while overall revenue grew by 4.5% [3] - Despite revenue growth, earnings per share declined by 5.4% year-on-year, and the company provided soft forward guidance, disappointing investors [3] Group 3: Dividend Policy - Hormel Foods has a strong dividend policy, having increased its dividends for 59 consecutive years [4] - The company declared a quarterly dividend of $0.29 per share, resulting in a dividend yield of 4.69% as of September 27 [4]