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

Hormel Foods (NYSE:HRL) released its earnings results on Wednesday. The company reported $0.42 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.01), Zacks reports. The company had revenue of $3.14 billion during the quarter, compared to analysts’ expectations of $3.14 billion. Hormel Foods had a return on equity of 11.03% and a net margin of 6.52%. The company’s revenue was down 1.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.42 earnings per share. 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 $32.00 on Thursday. The business has a fifty day moving average of $31.05 and a 200 day moving average of $31.53. Hormel Foods has a 52-week low of $28.51 and a 52-week high of $36.86. The company has a quick ratio of 1.03, a current ratio of 2.29 and a debt-to-equity ratio of 0.36. The stock has a market cap of $17.54 billion, a P/E ratio of 22.53, a PEG ratio of 3.39 and a beta of 0.26.

Hormel Foods Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, February 18th. Stockholders of record on Monday, January 13th will be given a dividend of $0.29 per share. The ex-dividend date is Monday, January 13th. This represents a $1.16 annualized dividend and a dividend yield of 3.63%. This is an increase from Hormel Foods’s previous quarterly dividend of $0.28. Hormel Foods’s payout ratio is currently 79.58%.

Analyst Ratings Changes

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

Insider Activity at Hormel Foods

In related news, SVP Kevin L. Myers sold 10,000 shares of the company’s stock in a transaction dated Wednesday, September 18th. The stock was sold at an average price of $32.70, for a total transaction of $327,000.00. Following the transaction, the senior vice president now directly owns 39,050 shares of the company’s stock, valued at $1,276,935. This represents a 20.39 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Steven J. Lykken sold 9,800 shares of the company’s stock in a transaction dated Friday, September 27th. The shares were sold at an average price of $31.91, for a total value of $312,718.00. Following the transaction, the vice president now directly 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 a total of 71,400 shares of company stock worth $2,288,338 in the last quarter. 0.69% of the stock is owned by company insiders.

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.