HRL•HRL•The current average analyst rating on the shares is "hold," with 3 "strong buy" or "buy" ratings, 8 "hold" ratings and no "sell" or "strong sell" ratings.
The average consensus recommendation for the food processing peer group is "buy."
Wall Street's median 12-month price target for Hormel Foods Corp is $27.00, about 13.9% above its August 26 closing price of $23.71.
The stock recently traded at 15 times the next 12-month earnings, versus a P/E of 14 three months ago.
Hormel said the decline in net sales reflected portfolio-shaping actions and the divestiture of Brazil operations, which was reflected in updated guidance.
Retail segment net sales fell as declines in commodity turkey and private label snack nuts were partially offset by growth in value-added turkey, contract manufacturing and priority brands.
The foodservice segment outperformed industry trends, driven by premium prepared proteins and branded products.
Hormel Foods said fiscal third-quarter sales fell 2% year over year, missing analyst expectations.
The company reported:
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Sales | Miss | $2.96 bln | $3.04 bln (8 Analysts) |
| Q3 EPS | $0.11 | ||
| Q3 Operating income |
| Miss |
| $110.9 mln |
| $262.97 mln (6 Analysts) |
| Q3 Pretax Profit | Miss | $103.2 mln | $252.04 mln (4 Analysts) |
| Q3 Operating Margin | 3.70% |
Hormel Foods expects fiscal 2026 net sales of $12.1 billion to $12.2 billion, compared with $12.2 billion to $12.5 billion earlier.
The company raised its fiscal 2026 adjusted EPS guidance to $1.45 to $1.51 from $1.43 to $1.51 previously.
Hormel said it expects the consumer environment to remain under pressure in coming quarters.
