Hormel Foods (NYSE:HRL) Announces Earnings Results, Misses Expectations By $0.01 EPS

Hormel Foods (NYSE:HRL) posted its quarterly earnings data on Wednesday. The company reported $0.42 earnings per share for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.01), Zacks reports. The firm had revenue of $3.14 billion for the quarter, compared to the consensus estimate of $3.14 billion. Hormel Foods had a net margin of 6.52% and a return on equity of 11.03%. The company’s revenue was down 1.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.42 EPS. Hormel Foods updated its FY 2025 guidance to 1.580-1.720 EPS and its FY25 guidance to $1.58-1.72 EPS.

Hormel Foods Price Performance

HRL opened at $32.88 on Friday. The company has a market capitalization of $18.03 billion, a price-to-earnings ratio of 23.15, a PEG ratio of 3.39 and a beta of 0.26. The company has a current ratio of 2.29, a quick ratio of 1.03 and a debt-to-equity ratio of 0.36. Hormel Foods has a 12-month low of $28.51 and a 12-month high of $36.86. The business’s fifty day simple moving average is $31.08 and its 200-day simple moving average is $31.54.

Hormel Foods Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, February 18th. Shareholders of record on Monday, January 13th will be given a dividend of $0.29 per share. The ex-dividend date of this dividend is Monday, January 13th. This is a positive change from Hormel Foods’s previous quarterly dividend of $0.28. This represents a $1.16 dividend on an annualized basis and a yield of 3.53%. Hormel Foods’s payout ratio is 79.58%.

Insider Activity at Hormel Foods

In other Hormel Foods news, EVP Deanna T. Brady sold 51,600 shares of the company’s stock in a transaction on Friday, September 13th. The stock was sold at an average price of $31.95, for a total transaction of $1,648,620.00. Following the completion of the sale, the executive vice president now owns 72,421 shares in the company, valued at $2,313,850.95. This represents a 41.61 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Steven J. Lykken sold 9,800 shares of Hormel Foods stock in a transaction on Friday, September 27th. The shares were sold at an average price of $31.91, for a total value of $312,718.00. Following the completion of the transaction, the vice president now owns 30,589 shares in the company, valued at $976,094.99. This represents a 24.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 71,400 shares of company stock worth $2,288,338 over the last three months. 0.69% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. BNP Paribas assumed coverage on shares of Hormel Foods in a report on Monday, October 21st. They set an “underperform” rating and a $28.00 price target on the stock. Citigroup reduced their price target on Hormel Foods from $36.00 to $35.00 and set a “buy” rating on the stock in a report on Tuesday, November 19th. Finally, Stephens initiated coverage on Hormel Foods in a report on Thursday, October 3rd. They set an “equal weight” rating and a $31.00 price objective for the company. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat.com, Hormel Foods has a consensus rating of “Hold” and a consensus target price of $31.29.

Hormel Foods Company Profile

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The company provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.