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NEW YORK -On Thursday, Hormel Foods Corporation (NYSE:HRL) reported first quarter fiscal 2025 results that exceeded revenue expectations, while earnings fell short of estimates.
The company reaffirmed its full-year outlook, sending shares up 1.29% in early trading.
The Austin, Minnesota-based food company posted adjusted earnings per share of $0.35, missing the analyst consensus of $0.39. Revenue came in at $2.99 billion, surpassing estimates of $2.96 billion and edging up 0.6% YoY on an organic basis.
Hormel reaffirmed its fiscal 2025 guidance, projecting adjusted earnings per share of $1.58 to $1.72 and revenue of $11.9 billion to $12.2 billion. The midpoint of both ranges aligns closely with analyst expectations.
"We achieved solid top-line results and are on-track to deliver on our 2025 expectations," said Jim Snee, president and CEO. "Our value-added portfolio is strong and performing well, evidenced by our solid top-line performance in the first quarter and our leadership positions in the marketplace."
The company’s Retail segment saw net sales decline 1.1% YoY, while Foodservice organic net sales grew 5%. International net sales decreased 2.4%.
Hormel noted that its Transform and Modernize initiative is expected to deliver year-over-year benefits of $100 million to $150 million in fiscal 2025.
The modest stock price increase suggests investors are cautiously optimistic about Hormel’s ability to meet its full-year targets despite the earnings miss, likely encouraged by the revenue beat and reaffirmed guidance.
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