Hormel Foods Corporation (HRL)

In the past six months, Hormel Foods' stock has experienced fluctuations influenced by earnings reports, leadership changes, and industry challenges. Hormel Foods reported its second-quarter fiscal 2025 results, with diluted earnings per share of $0.33 and adjusted diluted earnings per share of $0.35, which was in line with estimates. Net sales were $2.90 billion, slightly missing estimates. The company narrowed its fiscal 2025 organic net sales growth outlook to 2% to 3% and adjusted diluted EPS expectations to $1.58 to $1.68. Hormel reported Q1 2025 earnings of $0.35 per share, missing the consensus EPS forecast of $0.37. The company reported Q4 2024 earnings of $0.42 per share, slightly below the consensus of $0.43. A significant stock price advance occurred in March 2024 following the release of fiscal first-quarter 2024 earnings. John Ghingo was elevated to President, and Jeffrey M. Ettinger was appointed as interim Chief Executive Officer, accelerating Jim Snee's retirement, boosting investor confidence. The company has faced pressure on margins due to rising ingredient costs and increased employee compensation. Consumers have been less receptive to Hormel's price increases compared to competitors. The turkey business continues to face headwinds from avian flu. The nuts business has experienced a weak patch. A slow business rebound in China has also impacted performance.

Demand seasonality for Hormel Foods' products is influenced by various factors. Certain products like turkey may see increased demand around holidays. The company's diverse portfolio helps to balance out potential seasonal fluctuations. The company's strategy focuses on maintaining consistent demand through consumer-focused, protein-centric products and leading market positions.

Hormel Foods Corporation is an American multinational food processing company founded in 1891, operating within the Consumer Staples sector. It develops, processes, and distributes a wide range of food products across various markets. Hormel Foods is structured into Retail, Foodservice, and International segments. The company has diversified its portfolio to include other protein offerings and has become a global branded food company. Major products and brands include Hormel®, Spam®, Jennie-O®, Dinty Moore®, Applegate®, Wholly Guacamole®, Skippy®, Planters®, and Columbus Craft Meats. The company holds leading market positions in shelf-stable meat, shelf-stable ready meals, pepperoni, natural/organic deli meat, and guacamole.

Hormel Foods has a significant global presence, with products available in over 80 countries. The majority of its revenue is U.S.-based. Its international segment processes, markets, and sells products globally. The company has a presence in major international markets, including Australia, Brazil, Canada, China, England, Indonesia, Japan, Mexico, the Philippines, and South Korea.

Hormel Foods maintains a strong brand portfolio, with many brands holding top positions. The company has been recognized for its corporate social responsibility. Hormel Foods has engaged in brand-building activities, such as the Planters® brand celebrating 90 years and WHOLLY® GUACAMOLE uniting with Tajín. However, the company has faced challenges, including issues from avian flu, weakness in the nuts category, and past controversies regarding animal welfare, which could impact its reputation.

Hormel Foods Corporation has a significant number of institutional owners and shareholders. As of March 30, 2025, there were 1203 institutional owners holding a total of 262,586,349 shares. Major institutional owners include The Hormel Foundation, Vanguard Group Inc., State Street Corp, BlackRock, Inc., Geode Capital Management, LLC, Invesco Ltd., and ProShare Advisors LLC. Top mutual fund holders include Vanguard Index Funds - Vanguard Total Stock Market ETF, Vanguard Index Funds - Vanguard S&P 500 ETF, and Vanguard Index Funds - Vanguard Mid-Cap ETF.