Hormel Foods' Q1 prelim adj EPS beats estimates; co to divest whole-bird turkey business

Hormel Foods

18/02/2026 24:00

Overview

Global branded food company's preliminary Q1 net sales missed analyst expectations

Prelim adjusted EPS for Q1 beat analyst expectations

Company announced agreement to sell whole-bird turkey business

Outlook

Hormel Foods reaffirms fiscal 2026 organic net sales and adjusted EPS guidance

Company expects minimal impact from turkey business sale on fiscal 2026 metrics

Hormel targets long-term growth of 2-3% organic sales and 5-7% operating profit

Result Drivers

ORGANIC SALES GROWTH - Hormel Foods reported a 1.6% organic net sales growth for Q1 2026, marking the fifth consecutive quarter of year-over-year growth

PORTFOLIO SHAPING - Hormel announced the sale of its whole-bird turkey business to Life-Science Innovations, with minimal impact expected on fiscal 2026 guidance

STRATEGIC INITIATIVES - CEO Jeff Ettinger stated that Q1 prelim results align with expectations and reflect focus on initiatives for profitable growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$3 bln
$3.07 bln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.34
$0.32 (8 Analysts)
Q1 EPS
$0.33


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

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 $28.00, about 19.5% above its February 17 closing price of $23.44

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn3Xj7b9a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)