Hormel Foods Corporation (HRL)

Q2 markets were characterized by continued margin deterioration. QTD broiler margins improved sequentially but currently lag the Q1 average. Both fresh pork and hog production margins contracted yr/yr and beef margins deteriorated further. Unsurprisingly, the…

HRL’s Q2 results were nicely ahead of HJR/cons est, driven primarily by stronger-than-anticipated turkey profitability, favorable mix and milder-than-expected freight cost pressures. It did not raise guidance, but noted it is tracking toward the upper…

China’s latest (15th) Five-Year Plan (2026-2030) approved this past March echoed the 14th FYP’s emphasis upon foodstuff security as a priority. The latest iteration calls out diversification and modernization of agricultural systems as key to…

Over the past few months, the cost environment has become more onerous for the vast majority of companies and Hormel is no exception. Freight rates began to escalate early this year and the surge in…

Our coverage is greatly impacted by most global conflicts, given its intersection with global grain and energy markets. The Iran conflict’s impact on energy prices was immediate, but reverberations are expanding each day as critical…

HRL preannounced Q1 EPS ahead of CAGNY and full-year results February 26th. Relative to us, volumes disappointed in every segment, particularly Retail where volumes fell nearly 600bps yr/yr. Much of the decline was related to…

Hormel preannounced Q1 sales and earnings and EPS were $0.34, $0.02 ahead of HJR and consensus. No details were provided, so we are unable to offer much analysis of the report. However, below we detail…

S&D dynamics should remain favorable for much of our coverage in 2026, but we continue to believe full-year conditions will be looser than last year in both the U.S. and ROW. Given disease and weather,…

Hormel’s Q4 results ($0.32) were materially below the prior year, but exceeded HJR/consensus estimates. Excluding the plant fire/recall impact, EPS were $0.35. The primary focus for investors into the quarter, however, was guidance. In previous…

Hormel once more revised its guidance lower ($0.08-$0.09), citing higher-than-expected raw material costs, a plant fire, recall and HPAI; we estimate that ~5% of its annualized turkey supply has been hit by bird flu in…