Hormel Foods (NYSE:HRL) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Hormel Foods (NYSE:HRL) issued its earnings results on Wednesday. The company reported $0.42 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.01), Zacks reports. Hormel Foods had a return on equity of 11.03% and a net margin of 6.52%. The company had revenue of $3.14 billion during the quarter, compared to analyst estimates of $3.14 billion. During the same period in the previous year, the company posted $0.42 earnings per share. The company’s quarterly revenue was down 1.9% on a year-over-year basis. Hormel Foods updated its FY 2025 guidance to 1.580-1.720 EPS and its FY25 guidance to $1.58-1.72 EPS.

Hormel Foods Trading Down 1.0 %

Hormel Foods stock opened at $31.81 on Wednesday. The stock has a 50-day simple moving average of $31.03 and a 200 day simple moving average of $31.52. Hormel Foods has a 52 week low of $28.51 and a 52 week high of $36.86. The stock has a market capitalization of $17.44 billion, a P/E ratio of 22.40, a PEG ratio of 3.42 and a beta of 0.26. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.03 and a current ratio of 2.29.

Hormel Foods Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 18th. Shareholders of record on Monday, January 13th will be given a dividend of $0.29 per share. This is a positive change from Hormel Foods’s previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Monday, January 13th. This represents a $1.16 annualized dividend and a dividend yield of 3.65%. Hormel Foods’s payout ratio is 79.58%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. 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 target on the stock. Citigroup reduced their price target on shares of Hormel Foods from $36.00 to $35.00 and set a “buy” rating on the stock in a research report on Tuesday, November 19th. Finally, Stephens initiated coverage on shares of Hormel Foods in a research note on Thursday, October 3rd. They issued an “equal weight” rating and a $31.00 target price for the company. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $31.29.

Insider Buying and Selling

In other Hormel Foods news, SVP Kevin L. Myers sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, September 18th. The shares were sold at an average price of $32.70, for a total transaction of $327,000.00. Following the completion of the transaction, the senior vice president now directly owns 39,050 shares in the company, valued at $1,276,935. The trade was a 20.39 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Deanna T. Brady sold 51,600 shares of the business’s stock in a transaction on Friday, September 13th. The stock was sold at an average price of $31.95, for a total value of $1,648,620.00. Following the transaction, the executive vice president now directly owns 72,421 shares of the company’s stock, valued at $2,313,850.95. This trade represents a 41.61 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 71,400 shares of company stock valued at $2,288,338. Company insiders own 0.69% of the company’s stock.

Hormel Foods Company Profile

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.