Hormel Foods (NYSE:HRL) Announces Earnings Results

Hormel Foods (NYSE:HRL) issued its quarterly earnings data on Wednesday. The company reported $0.42 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.01), Zacks reports. Hormel Foods had a return on equity of 11.03% and a net margin of 6.52%. The business had revenue of $3.14 billion during the quarter, compared to the consensus estimate of $3.14 billion. During the same quarter last year, the company earned $0.42 EPS. Hormel Foods’s revenue for the quarter was down 1.9% on a year-over-year basis. Hormel Foods updated its FY 2025 guidance to 1.580-1.720 EPS and its FY25 guidance to $1.58-1.72 EPS.

Hormel Foods Trading Up 2.8 %

Hormel Foods stock opened at $32.88 on Friday. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.29 and a quick ratio of 1.03. The firm’s 50 day moving average price is $31.08 and its 200-day moving average price is $31.54. Hormel Foods has a 1 year low of $28.51 and a 1 year high of $36.86. The stock has a market cap of $18.03 billion, a P/E ratio of 23.15, a PEG ratio of 3.39 and a beta of 0.26.

Hormel Foods Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, February 18th. Shareholders of record on Monday, January 13th will be paid a $0.29 dividend. This represents a $1.16 annualized dividend and a yield of 3.53%. This is an increase from Hormel Foods’s previous quarterly dividend of $0.28. The ex-dividend date is Monday, January 13th. Hormel Foods’s dividend payout ratio is presently 79.58%.

Insider Activity at Hormel Foods

In other Hormel Foods news, SVP Kevin L. Myers sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 18th. The stock was sold at an average price of $32.70, for a total transaction of $327,000.00. Following the completion of the transaction, the senior vice president now owns 39,050 shares in the company, valued at $1,276,935. This trade represents a 20.39 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Deanna T. Brady sold 51,600 shares of the company’s stock in a transaction that occurred on Friday, September 13th. The stock was sold at an average price of $31.95, for a total value of $1,648,620.00. Following the sale, the executive vice president now directly owns 72,421 shares in the company, valued at $2,313,850.95. This trade represents a 41.61 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 71,400 shares of company stock valued at $2,288,338. Corporate insiders own 0.69% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Citigroup decreased their target price on Hormel Foods from $36.00 to $35.00 and set a “buy” rating on the stock in a report on Tuesday, November 19th. Stephens began coverage on Hormel Foods in a research note on Thursday, October 3rd. They issued an “equal weight” rating and a $31.00 price objective on the stock. Finally, BNP Paribas assumed coverage on Hormel Foods in a research note on Monday, October 21st. They set an “underperform” rating and a $28.00 price objective for the company. Two analysts have rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $31.29.

About Hormel Foods

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The company provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.