Hormel Foods Q3 sales miss estimates; cuts FY sales forecast

Hormel Foods

27/08/2026 11:12

Overview
U.S. branded food maker's fiscal Q3 sales fell 2% yr/yr, missing analyst expectations
Company raised and narrowed full-year adjusted EPS guidance after solid year-to-date performance
Hormel completed Brazil operations divestiture; impact reflected in updated guidance

Outlook
Hormel Foods expects fiscal 2026 net sales of $12.1 bln to $12.2 bln vs $12.2 - $12.5 bln earlier
Company raises fiscal 2026 adjusted EPS guidance to $1.45-$1.51 vs $1.43-$1.51 earlier
Hormel Foods expects consumer environment to remain under pressure in coming quarters

Result Drivers
PORTFOLIO ACTIONS - Co said net sales decline reflected portfolio-shaping actions and divestiture of Brazil operations
RETAIL MIX - 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
FOODSERVICE OUTPERFORMANCE - Foodservice segment outperformed industry trends, driven by premium prepared proteins and branded products

Key Details
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%
 

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 $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 vs. a P/E of 14 three months ago

Reuters Recommended Reads
Aug 24 - Hormel Foods names former Tyson executive Ash Bhumbla as CFO
Aug 26 - J.M. Smucker forecasts smaller-than-expected annual sales decline on steady coffee demand
Aug 25 - Marzetti Q4 adjusted EPS beats on Bachan's acquisition

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.)