What is the revenue and EPS growth rate for Hormel Foods year over year?

What were the key takeaways from Hormel Foods's earnings call?

What does Hormel Foods do and what are its main business segments?

What is Hormel Foods's gross profit margin?

What is the market's earnings forecast for Hormel Foods next quarter?

What factors drove the changes in Hormel Foods's revenue and profit?

What guidance did Hormel Foods's management provide for the next earnings period?

What were the key takeaways from Hormel Foods’s earnings call?

- **Q1 Growth**: 2% organic net sales driven by Foodservice (+7%) and International, offset by Retail decline.
- **Strategic Divestiture**: Whole-bird turkey sale to LSI to focus on high-margin value-added turkey (+15% Q1 consumption).
- **Q2 Guidance**: Flat to slightly up EPS, benefiting from pricing and restructuring, but logistics costs persist.
- **Risk Management**: Commodity volatility (beef, pork) and logistics challenges impact margins; T&M initiatives to mitigate.

**【CEO Summary Section】**
- Reported 2% organic net sales growth for Q1 FY2026, driven by Foodservice (+7%) and International (+high single digits) segments, offset by Retail decline.
- Announced sale of whole-bird turkey business to LSI, expected to close by Q2 FY2026. Transaction excludes value-added turkey products, retaining Jennie-O brand control.
- Q2 FY2026 guidance: flat to slightly up adjusted EPS vs. prior year, benefiting from second wave of retail pricing and restructuring savings.

**【CFO Financial Commentary】**
- Q1 FY2026 net sales: $3.0 billion (2% organic growth). Adjusted operating income: $247 million (8.2% margin). Adjusted EPS: $0.34.
- Input cost headwinds: beef (+industry-wide), pork trim (+12% YoY), nuts. Logistics costs increased due to winter weather.
- Full-year FY2026 guidance: 1%-4% organic sales growth, 4%-10% adjusted operating income growth, $1.43-$1.51 EPS.

**【Q&A Highlights】**
- **Q2 EPS Outlook**: Sequential improvement expected, but logistics costs and commodity volatility remain risks.
- **Retail Segment**: 2% net sales decline due to private label exits and higher costs. Pricing actions to offset COGS, but volume elasticity impacts growth.
- **Turkey on Turkey**: Divestiture reduces low-margin, volatile business; Jennie-O value-added turkey (+15% Q1 consumption) remains strategic growth driver.
- **Commodity Cost Outlook**: Pork costs expected to ease in back half, beef remains headwind. Gross margin expansion from pricing, mix, and T&M efficiency.

Hormel Foods Corporation (HRL) Q1 2026 Earnings Call Transcript

- **Top-line resilience**: $12B+ net sales, 2% organic growth despite 500+ bps raw material inflation. 
- **Cost-cutting impact**: 250 job reductions to free up $20-25M annual savings, reinvested in growth. 
- **Planters turnaround**: +12% dollar consumption, near-full distribution recovery. 
- **2026 guidance**: 1-4% sales growth, 4-10% operating income growth, driven by pork cost decline and pricing flow-through. 
- **Strategic shifts**: Exiting Brazil private-label, focusing on China/SPAM growth, AI-driven marketing.

**【CEO Summary Section】**
- Fiscal 2025 net sales exceeded $12 billion, with 2% organic growth, driven by all three segments (retail, foodservice, international). 
- Retail segment challenges included margin pressure from commodity costs, despite strong brand growth (e.g., Jennie-O, Planters). 
- Foodservice segment outperformed industry, leveraging direct sales and innovation. 
- International segment growth led by China, offset by Brazil underperformance. 
- Cost-cutting measures reduced 250 corporate/sales positions, with savings reinvested in growth initiatives. 
- 2026 outlook: 1-4% organic sales growth, 4-10% adjusted operating income growth, driven by pricing, mix, and T&M benefits.

**【CFO Financial Commentary】**
- FY2025: Adjusted EPS $1.37 vs. $0.87 GAAP EPS; Q4 loss $0.10 due to recall/fire ($0.03 EPS impact). 
- Key challenges: 500+ bps raw material inflation (pork, turkey), $164M intl impairment (Indonesia), $71M retail impairment. 
- Strengths: $845M cash flow, $633M dividend return (record), 60-year dividend streak. 
- 2026 assumptions: Pork costs decline, beef/nut costs elevated; gross margin expansion via pricing, mix, T&M. 
- SG&A: Comparable to prior year, with marketing reinvestment.

**【President's Strategic Focus】**
- Consumer obsession: Bacon innovations (pre-cooked, oven-ready), Jennie-O meal solutions. 
- Brand expansion: SPAM sushi format (100M+ sold in Japan), Applegate frozen chicken. 
- Portfolio reshaping: Exit private-label, close nonstrategic soup plant; $633M dividend return. 
- Future readiness: AI-driven marketing (SKIPPY generative content), T&M program closure (benefits embedded in guidance). 
- Brazil review: Strategic focus on China, branded exports; Brazil underperformance to be addressed.

**【Q&A Highlights】**
- **Cost Savings**: Restructuring to deliver $20-25M gross savings (2-3x cost), with $60M+ net benefit. 
- **Planters Recovery**: +12% dollar consumption, +13% distribution; lapping price hikes in Q2 2026. 
- **Turkey Outlook**: Stronger markets in 2026, but Q1 2026 pricing lag. 
- **Competitive Environment**: Retail pricing cautious, foodservice pricing lagged costs. 
- **Inventory Health**: Comfortable levels, strategic builds for cold-weather products.

Hormel Foods Corporation(HRL)-20251204-2025 Q4 Earnings call transcript

- **Top-line resilience**: 6% organic sales growth (Retail +5%, Foodservice +7%, Intl +8%) despite 400bps raw material inflation.
- **Profit pressure**: Adjusted EPS $0.35 vs. $0.42 prior year, driven by $15M commodity headwinds and delayed pricing benefits.
- **T&M savings**: $15M delivered Q3, on track for $100-150M annual run-rate by year-end.
- **2026 focus**: Rebaselining growth targets to reflect elevated commodity costs and cautious consumer sentiment.
- **Growth drivers**: Jennie-O turkey (+13%), Hormel pepperoni (+20% Foodservice), and China exports (+8% volume).

**【CEO Summary Section】**
- Interim CEO Jeff Ettinger highlighted 6% organic net sales growth in Q3, driven by all three segments (Retail, Foodservice, International). Despite top-line success, profitability was disappointing due to unanticipated commodity cost surges (e.g., pork bellies +30%, beef near all-time highs). 
- Emphasized the Transform and Modernize (T&M) initiative's progress, with $100-150M annual savings expected by year-end, and reaffirmed focus on profitable growth through protein-centric solutions.
- Noted targeted pricing actions to offset cost pressures, but warned margin recovery would lag into 2026.

**【CFO Financial Commentary】**
- Q3 organic net sales: $3B (+6% YoY), with Retail (+5%), Foodservice (+7%), and International (+8%) growth.
- Gross profit flat YoY due to 400bps raw material cost inflation, partially offset by $15M T&M savings.
- Adjusted EPS: $0.35 (vs. $0.42 prior year), impacted by $15M commodity headwinds.
- Cash flow: $157M (sequential improvement), with $300M+ capex for 2025 focused on capacity and tech.
- T&M initiative on track to deliver near-high end of $100-150M annual savings.

**【Q&A Highlights】**
- **Commodity Volatility**: CFO Smiley noted pork, beef, and nut costs exceeded expectations, requiring additional pricing actions. Foodservice margins lag due to 12-18mo price-cost lag.
- **Pricing Strategy**: Retail pricing cautious to balance consumer elasticity and brand health; Foodservice pricing passes through costs within 3-6 months. Q4 pricing actions will benefit 2026.
- **Segment Performance**: Jennie-O turkey (+13% volume), Hormel pepperoni (+20% Foodservice), and China exports (+8% volume) led growth. Planters recovery (+distribution, +household penetration) lagged profitability.
- **2026 Outlook**: CEO Ettinger reaffirmed long-term 2-3% sales/5-7% EBIT growth targets, but cautioned 2026 guidance will reflect revised assumptions (e.g., elevated commodity costs, slower consumer recovery).

Hormel Foods Corporation (HRL) Q3 2025 Earnings Conference Call Transcript

- **Topline Momentum**: Q2 net sales $2.9B (+1% organic), driven by Applegate (+20%), Jennie-O turkey (+4% consumption), and China exports (double-digit growth).
- **Profit Drivers**: T&M initiative on track for $100M-$150M savings, with Q2 benefits from Memphis DC and production efficiency.
- **Key Brands Revitalized**: Planters Q2 beat expectations, SPAM global growth (+30% Musubi sales), and Turkey portfolio pricing offsetting input costs.
- **Growth Outlook**: 2-3% FY25 sales growth, $1.58-$1.68 EPS, with H2 EPS up 70%+ vs. H1.

**【CEO Opening Remarks】**
- **Q2 Highlights**: Net sales of $2.9B (+1% organic), driven by strong Retail (Applegate, Jennie-O lean ground turkey), Foodservice outperformance, and double-digit growth in International exports and China.
- **Growth Drivers**: 
  - **Applegate**: 20%+ sales growth, new chicken products launching Q3.
  - **Jennie-O**: Category leader with 4%+ consumption growth in ground turkey.
  - **Planters**: Exceeded Q2 expectations, set for sequential improvement in Q3/Q4.
- **T&M Initiative**: On track for $100M-$150M savings, with 66 projects completed Q2 (e.g., Memphis DC opening, dry sausage plant closure).
- **Full Year Outlook**: Narrowed to 2-3% organic sales growth, $1.58-$1.68 EPS, driven by Turkey, Planters, Foodservice, and T&M benefits.

**【CFO Financial Details】**
- **Q2 Results**: 
  - GAAP EPS: $0.33; Non-GAAP EPS: $0.35 (in-line expectations).
  - Gross margin: 16.7% (down 100bps vs. prior year, offset by T&M savings).
  - Operating expenses: -50bps vs. prior year (legal costs lapped).
- **Cash Flow**: $56M from ops (inventory build for summer), $75M capex (capacity, tech).
- **T&M Progress**: $100M-$150M savings expected FY25, with visible benefits in Q2.
- **Commodity Costs**: Pork, beef, nuts elevated, but pricing actions and T&M offsetting pressures.

**【Q&A Key Takeaways】**
- **Planters Recovery**: 
  - Q2 sales beat expectations, year-over-year consumption to turn positive Q3.
  - $100M+ ad spend in H2 for innovation (flavored cashews, nut duos).
- **Turkey Business**: 
  - Value-added pricing offsetting supply tightness, Jennie-O #1 in ground turkey.
  - 2025 supply outlook constructive, fresh season gains expected Q4.
- **Foodservice Growth**: 
  - Mid-single-digit top-line vs. industry softness, driven by innovation (hot honey sausage, FLASH 180 chicken).
  - Favorable comps and Planters C-store expansion.
- **T&M Savings**: 
  - Q2 savings on track, Memphis DC and production system standardization key enablers.
  - 2026+ savings potential from supply chain modernization.


Hormel Foods Corporation (HRL) Q2 2025 Earnings Call Transcript

- **Topline Growth**: Q1 organic sales +1% driven by SPAM, Applegate, and Hormel Black Label Bacon.
- **T&M Momentum**: FY25 benefits expected $100-150M, with Memphis DC expansion to enhance distribution.
- **EPS Outlook**: Q2 EPS flat vs Q1, with back-half growth from Planters recovery and turkey normalization.
- **CEO Transition**: Board conducting external/internal search; Jim Snee remains until FY25 end.
- **Risk Management**: Strategic turkey pricing actions to offset supply chain disruptions.


**【CEO Opening Remarks】**
- Organic net sales grew 1% in Q1, driven by flagship brands like SPAM, Applegate, and Hormel Black Label Bacon.
- SPAM saw household penetration growth and new product launches (e.g., SPAM Musubi in retail sushi departments).
- Applegate expanded with frozen breakfast platforms, while Hormel Black Label introduced Oven-Ready bacon for convenience.
- Planters brand recovery on track with sequential improvement in distribution and fill rates.
- Foodservice segment achieved 5th consecutive quarter of double-digit net sales growth in premium prepared proteins.
- T&M initiative expected to deliver $100-150M benefits in FY25, with focus on modernizing processes and reducing commodity exposure.

**【CFO Financial Highlights】**
- Q1 net sales: $3B (+1% organic growth)
- Gross profit margin: 15.9% ( pressured by Planters recovery costs, higher pork/beef/nut input costs)
- Adjusted EPS: $0.35 (in line with expectations)
- Operating cash flow: $309M; capital expenditures: $72M (focused on value-added capacity)
- Dividend: $1.16 annual rate (+3% YoY)
- FY25 guidance: Organic net sales +1-3%, adjusted EPS $1.58-1.72

**【Q&A Key Takeaways】**
- **EPS Cadence**: Q2 EPS expected comparable to Q1, with back-half growth driven by Planters recovery, T&M benefits, and turkey supply normalization.
- **CEO Succession**: Board conducting rigorous internal/external search; Jim Snee will remain until end of FY25 as strategic advisor.
- **Turkey Supply Chain**: Strategic pricing actions taken to offset bird disease impacts; benefits to flow into Q3+.
- **T&M Progress**: FY25 benefits on track; Memphis DC expansion progressing to enhance distribution efficiency.
- **Planters Recovery**: Sequential distribution gains; expect full recovery by FY25H2 with lapping of strong FY24 comps.


Actual															0.45	0.42	0.37	0.43	0.41	0.42	0.39	0.51	0.44	0.48	0.4	0.51	0.4	0.4	0.4	0.42	0.41	0.38	0.37	0.42	0.35	0.35	0.35	0.32	0.34
Forecast															0.4548	0.4255	0.3445	0.4381	0.404	0.41	0.3888	0.5006	0.4371	0.4695	0.409	0.4979	0.4522	0.389	0.4098	0.4438	0.3369	0.3559	0.3647	0.4234	0.3764	0.3417	0.4015	0.3017	0.323
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-1.06%	-1.29%	+7.40%	-1.85%	+1.49%	+2.44%	+0.31%	+1.88%	+0.66%	+2.24%	-2.20%	+2.43%	-11.54%	+2.83%	-2.39%	-5.36%	+21.70%	+6.77%	+1.45%	-0.80%	-7.01%	+2.43%	-12.83%	+6.07%	+5.26%

Actual	--	--	--	--	--	--	--	--	--	--	--	--	--	--	2.38B	2.40B	2.38B	2.42B	2.46B	2.61B	2.86B	3.45B	3.04B	3.10B	3.03B	3.30B	2.97B	2.98B	2.96B	3.20B	3.00B	2.89B	2.90B	3.14B	2.99B	2.90B	3.03B	3.19B	3.03B
Forecast	--	--	--	--	--	--	--	--	--	--	--	--	--	--	2.37B	2.39B	2.37B	2.59B	2.37B	2.41B	2.73B	3.22B	2.92B	3.07B	3.02B	3.38B	3.07B	3.06B	3.04B	3.26B	2.91B	2.97B	2.95B	3.14B	2.95B	2.90B	2.98B	3.22B	3.07B
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+0.61%	+0.66%	+0.67%	-6.66%	+3.78%	+8.27%	+5.05%	+7.21%	+4.26%	+0.90%	+0.38%	-2.24%	-3.38%	-2.60%	-2.67%	-1.93%	+2.95%	-2.70%	-1.59%	-0.14%	+1.43%	-0.16%	+1.63%	-1.18%	-1.30%

HRL

HRL fundamentals

HRL Q1 2026 Earnings

Earnings Call

You can ask Aime

HRL

HRL fundamentals

HRL Q1 2026 Earnings

Earnings Call

HRL Earnings Call Summary for Q1/20268:00 AM on Feb 26, 2026

HRL Earnings Call Summary for Q4/20259:00 AM on Dec 4, 2025

HRL Earnings Call Summary for Q3/20259:00 AM on Aug 28, 2025

HRL Earnings Call Summary for Q2/20259:00 AM on May 29, 2025

HRL Earnings Call Summary for Q1/20259:30 AM on Feb 27, 2025

You can ask Aime