Hormel Foods shares rise as revenue tops estimates, guidance reaffirmed

Published 27/02/2025, 12:48
Hormel Foods shares rise as revenue tops estimates, guidance reaffirmed

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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