Hormel Foods Delivers Revenue Beat, Holds Steady on 2025 Outlook
Hormel Foods (NYSE:HRL) delivered stronger-than-expected revenue in its first-quarter fiscal 2025 results, though earnings fell short of Wall Street forecasts. As a result, the company’s shares fell more than 3% intra-day today.
The company reported adjusted earnings per share of $0.35, coming in below analysts' $0.39 forecast. However, revenue exceeded expectations at $2.99 billion, surpassing the $2.96 billion estimate and reflecting a 0.6% organic year-over-year increase.
Maintaining its full-year 2025 guidance, Hormel projects adjusted EPS between $1.58 and $1.72, along with revenue in the range of $11.9 billion to $12.2 billion. Both midpoints align closely with market expectations.
The company highlighted the strength of its value-added product portfolio, which has been a key driver of revenue growth. With solid top-line performance and leadership in its core markets, Hormel remains on track to meet its long-term financial objectives.
Despite near-term earnings pressure, the reaffirmed outlook and steady demand for its product lineup suggest continued resilience in a dynamic market environment.
| Symbol | Price | %chg |
|---|---|---|
| PANI.JK | 11500 | 0 |
| ICBP.JK | 11000 | 0 |
| INDF.JK | 7475 | 0 |
| MYOR.JK | 2480 | 0 |
Hormel Foods Corporation (NYSE:HRL) Q4 Fiscal 2024 Earnings Overview
- Hormel Foods Corporation (NYSE:HRL) reported a Q4 fiscal 2024 EPS of $0.42, slightly below the estimated $0.43.
- The company's revenue was approximately $3.14 billion, with a gross profit increase to $521.2 million.
- Hormel's financial ratios such as the P/E ratio of 22.48 and a current ratio of 2.29 indicate its market position and liquidity strength.
Hormel Foods Corporation, listed on the NYSE under the symbol HRL, is a well-known player in the food industry, particularly in the meat products sector. The company recently reported its fourth-quarter fiscal 2024 earnings, revealing an earnings per share (EPS) of $0.42, slightly below the estimated $0.43. Hormel generated revenue of approximately $3.14 billion, just under the expected $3.14 billion.
During the earnings conference call on December 4, 2024, key figures from Hormel, including CEO Jim Snee and CFO Jacinth Smiley, discussed the company's financial performance. Despite the slight miss in EPS, Hormel's gross profit increased to $521.2 million from $514.4 million the previous year. However, net sales declined to $3.1 billion from $3.2 billion, with a 4.1% drop in volumes, as highlighted by Seeking Alpha.
The earnings call also featured questions from financial analysts from firms like Oppenheimer and JPMorgan. Hormel's quarterly earnings of $0.42 per share matched the previous year's performance but fell short of the Zacks Consensus Estimate, resulting in a negative surprise of 2.33%. In contrast, the company had exceeded expectations in the previous quarter with a positive surprise of 2.78%.
Hormel's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 22.48, indicating how the market values its earnings. Its price-to-sales ratio is about 1.46, and the enterprise value to sales ratio is around 1.66, reflecting its valuation relative to sales. Hormel's debt-to-equity ratio of approximately 0.36 suggests a moderate level of debt compared to equity.
Despite the challenges, Hormel maintains a strong liquidity position with a current ratio of about 2.29, indicating its ability to cover short-term liabilities with short-term assets. The company's earnings yield is approximately 4.45%, offering a perspective on the return on investment. These financial metrics highlight Hormel's resilience in a competitive industry.
