Hormel Foods stock plunges 13.4% to $25.13.

Hormel Foods fell 13.4% to $25.13.

Hormel Foods Corporation (NYSE: HRL) experienced a significant decline in its share price, falling by 13.4% to $25.13 in the morning session following the release of its second-quarter earnings report. The company's shares reacted negatively to the news, with analysts expecting stronger financial performance.

The company reported revenue of $3.03 billion, which exceeded market expectations. However, adjusted earnings per share (EPS) came in at $0.35, falling short of the consensus estimate of $0.41. This discrepancy was exacerbated by an adjusted EBITDA that missed analyst estimates by 17.1%. The company also lowered its full-year adjusted earnings guidance to $1.44 per share at the midpoint, signaling ongoing challenges.

The stock market's overreaction to the news highlights the volatility in the financial sector. Hormel Foods' shares have historically shown low volatility, with only one significant move greater than 5% over the past year. The latest drop, however, indicates a significant shift in market perception.

Investors who bought Hormel Foods' shares five years ago would now see their investment worth $500.30, down from $1,000. The stock is currently trading 24.5% below its 52-week high of $33.55, set in December 2024. The company's performance in the third quarter of fiscal 2025, reported on August 28, 2025, highlighted strong top-line results but disappointing earnings due to commodity input cost inflation. The company expects continued net sales growth in the fourth quarter but anticipates profit recovery to lag into next year.

Hormel Foods faces challenges such as lower-than-expected commodity markets, production disruptions, and declines in its contract manufacturing business. Despite these challenges, the company remains optimistic about its portfolio's ability to deliver impressive top-line results and is committed to improving earnings.

References:
[1] https://finance.yahoo.com/news/why-hormel-foods-hrl-shares-184306939.html
[2] https://investor.hormelfoods.com/news-and-events/news/news-details/2025/HORMEL-FOODS-REPORTS-THIRD-QUARTER-FISCAL-2025-RESULTS/default.aspx