Hormel Foods Corp (NYSE:HRL) stock fell on Thursday after the company reported mixed first-quarter FY26 results.Earnings SnapshotThe company reported adjusted earnings per share of 34 cents, beating the analyst consensus estimate of 32 cents.However, sales of $3.03 billion missed the Street view of $3.07 billion.The company reported operating income of $244 million and adjusted operating income of $247 million, resulting in an operating margin of 8% and an adjusted operating margin of 8.2%.Cash flow from op ...

Key Takeaways Q1 net sales rose 1.3% while adjusted EPS beat estimates despite a year-over-year decline.HRL's Retail sales dropped 2%, while Foodservice and International rose 7% and 8%, respectively.HRL reaffirmed fiscal 2026 sales of $12.2B-$12.5B and EPS guidance of $1.43-$1.51.Hormel Foods Corporation (HRL) reported first-quarter fiscal 2026 results, with the top line increasing year over year while missing the Zacks Consensus Estimate. The bottom line declined year over year but beat the consensus mark ...

Core Insights - Hormel Foods Corporation's international business is crucial for growth, but the fourth quarter of fiscal 2025 showed mixed results with a 6% year-over-year decline in international net sales [1][8] Group 1: Regional Performance - China demonstrated strength with ongoing volume and net sales growth for SPAM and refrigerated products, indicating sustained brand relevance and demand for convenient protein options [2] - Fresh pork exports faced significant declines due to market softness and trade pressures, particularly in Brazil, where competitive intensity affected volumes and pricing [3] Group 2: Volume and Profitability - The international segment's volumes decreased by 8% in the quarter, highlighting the sensitivity of Hormel Foods' overseas business to regional market dynamics [3] - Profitability trends were negatively impacted by high commodity input costs and ongoing challenges in Brazil [3][8] Group 3: Long-term Outlook - Despite near-term challenges, Hormel Foods' established brands, especially in high-growth regions like China, provide a foundation for long-term expansion opportunities [4] Group 4: Stock Performance - Hormel Foods' shares have increased by 1.8% over the past month, outperforming the industry's decline of 0.3% during the same period [5]

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].