Hormel Foods Corporation (HRL)

We have adjusted our EPS estimates to account for the recently announced Brakebush acquisition (expected to close during Q1’27) and a more cautious view of volume growth/margins in the legacy business. We have estimated Brakebush…

Although HRL reported better than-expected Q3 EPS, its volumes were materially weaker than we had projected and well below consensus. Our projection included the estimated impact from purposeful porfolio actions (whole birds, PL snack nuts,…

Hormel will report Q3 results Thursday, August 27. We have raised our full-year estimate to $1.50 ($1.47) as we believe a more favorable input cost environment should more than offset a weaker-than-expected top line. Our…

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…