Hormel Foods Corp (HRL)
NYSE:HRL
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Earnings Data
Report Date
Aug 27, 2026Before Open (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.36Last Year’s EPS
0.35Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple clear operational and financial positives: consistent organic growth across all segments, margin expansion, strong adjusted EPS growth (+14% to $0.40), robust cash generation, and strategic portfolio moves (divestiture and CTO hire). These positives were balanced against manageable near-term headwinds—primarily higher fuel/logistics costs, commodity volatility (pork/beef), and a planned inventory rebalancing expected to pressure Q3 results and keep third-quarter adjusted earnings roughly flat year-over-year. Because management reaffirmed full-year guidance and indicated momentum toward the upper half of the earnings range, and because the favorable drivers (pricing, mix, manufacturing improvements, JV strength) appear to materially outweigh the temporary challenges, the overall tone is constructive and confident.Company Guidance
Consistent Top-Line Growth
Organic net sales grew 3% year-over-year in Q2, marking the company's sixth consecutive quarter of organic growth and demonstrating continued top-line momentum across the portfolio.
Strong Adjusted Earnings Performance
Adjusted earnings per share (EPS) was $0.40 in Q2, up 14% versus prior year, reflecting double-digit adjusted earnings growth driven by margin expansion and productivity gains.
Margin Expansion and Gross Profit Improvement
Gross profit rose 7% year-over-year and gross margin expanded to 17.4% (up 70 basis points). Adjusted operating margin also expanded by 80 basis points, reflecting pricing, mix, and manufacturing benefits.
Foodservice Segment Strength
Foodservice delivered organic net sales growth of 7% (the eleventh consecutive quarter of foodservice organic growth) with segment profit up 11%, driven by pricing, mix, and product innovation (e.g., pepperoni/pizza toppings).
International Momentum
International posted organic net sales growth of 5% with segment profit rising 20% year-over-year, led by China and branded exports (SPAM), reflecting disciplined investment and localized strategy success.
Retail Progress and Priority Brand Performance
Retail returned to positive organic growth of 1% with segment profit up 13%. Priority brands showed strength (e.g., Jennie-O ground turkey delivered double-digit dollar sales and share gains; Applegate and Herdez gained distribution and consumption).
Operational and Supply Chain Improvements
Meaningful manufacturing improvements—notably in vertically integrated Turkey operations—plus productivity and mix gains supported margin expansion and offset cost pressures in the quarter.
Cash Generation and Capital Allocation
Generated $179 million of operating cash flow in Q2, invested $82 million in capex, returned $161 million to shareholders via dividends (391st consecutive quarterly payout), and ended the quarter with $827 million cash on hand (up $156 million year-over-year).
Strategic Portfolio Simplification
Closed the divestiture of the whole bird turkey business as a strategic move to focus on higher-value, less volatile branded offerings; expected ~ $50 million reduction in fiscal 2026 net sales with minimal impact to full-year adjusted earnings.
Confidence and Reaffirmed Full-Year Guidance
Management reaffirmed full-year net sales expectations (~$12.2B to $12.5B) and adjusted EPS guidance of $1.43 to $1.51, and indicated results are trending toward the upper half of the earnings range based on first-half momentum.
Enhanced Technology Leadership
Appointed the company’s first Chief Technology Officer to accelerate digital transformation and improve speed, agility, and enterprise technology capabilities.
HRL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HRL Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 28, 2026 | $20.96 | $23.59 | +12.55% |
Feb 26, 2026 | $24.95 | $24.47 | -1.94% |
Dec 04, 2025 | $22.65 | $23.52 | +3.83% |
Aug 28, 2025 | $27.91 | $24.25 | -13.09% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Hormel Foods Corp (HRL) report earnings?
Hormel Foods Corp (HRL) is schdueled to report earning on Aug 27, 2026, Before Open (Confirmed).
What is Hormel Foods Corp (HRL) earnings time?
Hormel Foods Corp (HRL) earnings time is at Aug 27, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is HRL EPS forecast?
HRL EPS forecast for the fiscal quarter 2026 (Q3) is 0.36.
