Hormel Foods (NYSE:HRL) Releases FY25 Earnings Guidance

Hormel Foods (NYSE:HRL) issued an update on its FY25 earnings guidance on Wednesday morning. The company provided earnings per share guidance of $1.58-1.72 for the period, compared to the consensus earnings per share estimate of $1.68. The company issued revenue guidance of $11.9-12.2 billion, compared to the consensus revenue estimate of $12.18 billion. Hormel Foods also updated its FY 2025 guidance to 1.580-1.720 EPS.

Analysts Set New Price Targets

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

Hormel Foods Stock Down 3.3 %

Shares of HRL stock opened at $30.77 on Wednesday. The stock has a market cap of $16.87 billion, a P/E ratio of 22.40, a PEG ratio of 3.42 and a beta of 0.26. The company’s fifty day simple moving average is $31.03 and its two-hundred day simple moving average is $31.52. The company has a quick ratio of 1.03, a current ratio of 2.29 and a debt-to-equity ratio of 0.36. Hormel Foods has a 52 week low of $28.51 and a 52 week high of $36.86.

Hormel Foods (NYSE:HRL) last announced its quarterly earnings results on Wednesday, December 4th. The company reported $0.42 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.01). Hormel Foods had a net margin of 6.52% and a return on equity of 11.03%. The firm had revenue of $3.14 billion for the quarter, compared to the consensus estimate of $3.14 billion. During the same period in the previous year, the company posted $0.42 earnings per share. Hormel Foods’s quarterly revenue was down 1.9% on a year-over-year basis. Analysts predict that Hormel Foods will post 1.58 EPS for the current fiscal year.

Hormel Foods Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, February 18th. Investors of record on Monday, January 13th will be given a $0.29 dividend. This represents a $1.16 annualized dividend and a yield of 3.77%. The ex-dividend date of this dividend is Monday, January 13th. This is a boost from Hormel Foods’s previous quarterly dividend of $0.28. Hormel Foods’s payout ratio is currently 79.58%.

Insiders Place Their Bets

In other news, EVP Deanna T. Brady sold 51,600 shares of the business’s stock in a transaction that occurred on Friday, September 13th. The stock was sold at an average price of $31.95, for a total transaction of $1,648,620.00. Following the transaction, the executive vice president now owns 72,421 shares of the company’s stock, valued at approximately $2,313,850.95. The trade was a 41.61 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Steven J. Lykken sold 9,800 shares of the business’s stock in a transaction on Friday, September 27th. The shares were sold at an average price of $31.91, for a total transaction of $312,718.00. Following the transaction, the vice president now owns 30,589 shares in the company, valued at $976,094.99. This trade represents a 24.26 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 71,400 shares of company stock valued at $2,288,338 in the last three months. Corporate insiders own 0.69% of the company’s stock.

About Hormel Foods

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.