Hormel Foods Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.64%.
Did HRL Beat Earnings? Q3 2025 Results
Hormel Foods delivered a sharply split fiscal third-quarter report, with strong top-line results failing to mask a significant profitability miss that rattled investors and prompted a steep guidance cut. Net sales rose 4.6% year-over-year to $3.03 billion, edging past the $2.98 billion consensus by 1.63%, but adjusted diluted EPS of $0.35 fell well short of the $0.41 analysts had expected, a miss of 15.05% that interim CEO Jeff Ettinger openly called "disappointing." The culprit was broad-based commodity input cost inflation, which overwhelmed volume gains across all three business segments, leaving retail, foodservice, and international divisions each posting profit declines despite growing their top lines. Ettinger, who recently rejoined the company, cited the headwinds as industry-wide, and some market observers have been blunt in noting Hormel's limited pricing power given its commodity-exposed portfolio. Looking ahead, the company slashed its full-year adjusted diluted EPS guidance to $1.43 to $1.45 from a prior range of $1.58 to $1.68, warning that meaningful profit recovery will likely extend into next fiscal year.
- Strong organic volume and net sales growth across all three segments
- Jennie-O lean ground turkey delivered strong results with expanded distribution and incremental dollar share
- Hormel premium pepperoni grew volume by over 20% in Foodservice
- Planters brand reached year-over-year dollar sales growth and grew household penetration
- Transform and Modernize initiative with approximately 90 projects contributing measurable value
- Growth in China market and robust SPAM luncheon meat exports in International segment
“I am honored to rejoin this great company and partner with John Ghingo and the entire leadership team to focus on restoring profitable growth. As I have started to meet with team members across the organization, I am confident in the capabilities of our team and the opportunities for our company.”
Hormel Foods CEO, on the earnings call
Forward Guidance & Outlook
Hormel significantly lowered its full-year fiscal 2025 outlook. Revised full-year adjusted diluted EPS guidance is $1.43–$1.45, down from prior guidance of $1.58–$1.68. Revised GAAP diluted EPS is $1.33–$1.35, down from $1.49–$1.59. Revised adjusted operating income is $1,054–$1,070 million, down from $1,175–$1,248 million. For Q4 fiscal 2025, the company expects net sales of $3.15–$3.25 billion, organic net sales growth of 1%–4%, GAAP diluted EPS of $0.36–$0.38, and adjusted diluted EPS of $0.38–$0.40. Management expects continued net sales growth but warned that profit recovery will lag into next fiscal year, with commodity cost pressures persisting through Q4. The company is taking targeted pricing actions to address commodity inflation. The effective tax rate for fiscal 2025 is expected to be approximately 22.0%. Capital expenditures for fiscal 2025 are estimated at approximately $300 million. Depreciation and amortization for full-year fiscal 2025 is expected to be approximately $260 million. Advertising investments are expected to decline in Q4 compared to the prior year.
HRL YoY Financials
HRL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.