Hormel Foods Q2 sales slightly beat on broad-based segment growth

Hormel Foods

28/05/2026 11:12

Overview
U.S. branded food maker's fiscal Q2 sales slightly beat analyst expectations, adjusted EPS beat
Company completed sale of whole-bird turkey business, shifting focus to value-added protein
Hormel reaffirmed full-year sales and adjusted EPS guidance, updated reported EPS outlook

Outlook
Hormel Foods reaffirms fiscal 2026 net sales guidance of $12.2 bln to $12.5 bln
Company updates fiscal 2026 diluted EPS guidance to $1.28-$1.37 from $1.37-$1.46
Hormel Foods expects minimal impact to adj EPS from turkey business divestiture

Result Drivers
BROAD-BASED SEGMENT GROWTH - All segments delivered net sales and segment profit growth, reflecting strength across the business, per President John Ghingo
BRANDED AND VALUE-ADDED PRODUCTS - Growth driven by strong performance in Jennie-O ground turkey, Applegate meats, Hormel Black Label bacon, Herdez portfolio, Hormel Gatherings trays, and branded products in Foodservice
EXPORT AND CHINA BUSINESS - International segment growth driven by strong SPAM exports and in-country China business

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Beat*
$2.97 bln
$2.95 bln (6 Analysts)
Q2 Adjusted EPS
Beat
$0.40
$0.36 (8 Analysts)
Q2 EPS
 
$0.29
 
Q2 Operating income
Miss
$217 mln
$265.85 mln (5 Analysts)
Q2 Pretax Profit
Miss
$206 mln
$254.58 mln (4 Analysts)
Q2 Operating Margin
 
7.30%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "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 $25.00, about 19.3% above its May 27 closing price of $20.96
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)