Shares of Hormel Foods dropped sharply in premarket trading Thursday after the Spam maker said it expects "near-term pressures" continuing through the current quarter. https://t.co/wPmxmAkW8Z ...

Third Quarter Key Messages - The company delivered strong top-line growth, supported by each segment[7] - Bottom-line results were pressured by a steep rise in commodity input costs[7] - Leadership is aligned on a clear mission of profitable growth[7] Retail Segment Performance (FY25 Q3 YoY) - Retail volume increased by 5%[18] - Retail net sales increased by 5%[18] - Retail segment profit decreased by 4%[18] Foodservice Segment Performance (FY25 Q3 YoY) - Foodservice organic volume increased by 2%[22] - Foodservice organic net sales increased by 7%[22] - Foodservice segment profit decreased by 1%[22] International Segment Performance (FY25 Q3 YoY) - International volume increased by 8%[24] - International net sales increased by 6%[24] - International segment profit decreased by 13%[24] Fiscal Year 2025 Outlook (Revised) - Net sales are expected to be in the range of $12.1 billion to $12.2 billion[29] - Operating income is expected to be in the range of $0.98 billion to $1.00 billion[29] - Adjusted operating income is expected to be in the range of $1.05 billion to $1.07 billion[29] - Adjusted diluted earnings per share are expected to be in the range of $1.43 to $1.45[29] - Capital expenditures are targeted at approximately $300 million[30] - The Transform & Modernize initiative is expected to contribute incremental benefits in the range of $100 million to $150 million[30]

Core Insights - Hormel Foods Corporation reported strong top-line results for Q3 fiscal 2025, with net sales of $3.03 billion, representing a 4.6% increase compared to the same period in fiscal 2024 [8][30]. - The company faced challenges with profitability due to rising commodity input costs, which were partially mitigated by the Transform and Modernize (T&M) initiative [4][6]. - The leadership team is focused on restoring profitable growth and aligning on a clear mission to enhance long-term sustainable value [3][6]. Financial Performance - Net sales for Q3 fiscal 2025 were $3.03 billion, with organic net sales growth of 6% [8][30]. - Operating income was reported at $240 million, with an adjusted operating income of $254 million [8][30]. - The diluted earnings per share were $0.33, while adjusted diluted earnings per share were $0.35 [8][30]. Segment Highlights - **Retail Segment**: Net sales growth was driven by the turkey portfolio, Planters® snack nuts, and SPAM® products, with a profit decline due to input cost pressures [13][17]. - **Foodservice Segment**: Hormel® premium pepperoni saw volume growth of over 20%, contributing to overall segment performance despite profitability challenges [15][17]. - **International Segment**: Strong performance was noted in the China market and SPAM® exports, although profits decreased due to competitive pressures in Brazil [18]. Fourth Quarter Outlook - The company anticipates net sales for Q4 fiscal 2025 to be between $3.15 billion and $3.25 billion, with organic net sales growth projected at 1% to 4% [6][5]. - Diluted earnings per share for Q4 are expected to be in the range of $0.36 to $0.38, with adjusted diluted earnings per share between $0.38 and $0.40 [6][5]. Strategic Initiatives - The T&M initiative is ongoing, with approximately 90 projects contributing measurable value and earnings to the enterprise [16][34]. - The company is focused on enhancing operational efficiency and long-term scalability through strategic decisions, including the partial closure of a facility [16][34]. Advertising and Capital Expenditures - Advertising investments for the quarter were $41 million, slightly up from $40 million in the previous year [24]. - Capital expenditures were $72 million, with expectations for approximately $300 million for fiscal 2025, focusing on capacity expansions and technology investments [24]. Cash Flow and Shareholder Returns - Cash flow from operations for the quarter was $157 million, with approximately $159 million returned to stockholders through dividends [8][24]. - The effective tax rate for the quarter was 22.3%, compared to 21.7% in the previous year [24].

Launched alongside the spicy arrival of LA VICTORIA® Verde Habanero Salsa, these newest offerings build on the brand's legacy of bold, unforgettable flavorORANGE, Calif., Aug. 26, 2025 /PRNewswire/ -- The LA VICTORIA® brand, long celebrated for bold, crave-worthy salsas and sauces, is today unveiling four fresh culinary creations that build upon its century-long legacy of flavor excellence. The brand team is launching an all-new line of signature topping sauces, available in three distinct flavors: Chipotle ...

Core Insights - Hormel Foods Corporation (HRL) is expected to report top-line growth for Q3 fiscal 2025, with revenues estimated at $2.98 billion, reflecting a 2.7% increase year-over-year [1] - The earnings consensus remains unchanged at 41 cents per share, indicating a 10.8% rise from the previous year [2] Company Performance - The Foodservice segment is driving demand, supported by strong customer relationships and an innovative product portfolio, with management anticipating mid-single-digit growth in net sales for this segment [3][11] - Management is optimistic about growth in the Retail segment, particularly with flagship and emerging brands, and expects low single-digit net sales growth [4][5] - The International segment is also projected to maintain strong top-line performance [5] Challenges - Increased spending on talent, technology, and brand support poses challenges, alongside tough year-over-year comparisons due to strong prior-year performance [6][11] - Ongoing pressure in the turkey supply chain due to bird illness is being closely monitored [6] Earnings Outlook - The company has a positive Earnings ESP of +0.61% and a Zacks Rank of 3, suggesting a potential earnings beat [7]

Core Viewpoint - Wall Street analysts forecast a quarterly earnings per share (EPS) of $0.41 for Hormel Foods, indicating a year-over-year increase of 10.8%, with anticipated revenues of $2.98 billion, reflecting a 2.7% increase compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised 1.4% lower over the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Metrics Estimates - Analysts expect 'Net Sales- Retail' to reach $1.82 billion, representing a 3% increase year-over-year [5]. - 'Net Sales- International' is projected at $191.35 million, suggesting an 8% year-over-year increase [5]. - 'Net Sales- Foodservice' is estimated to be $967.49 million, indicating a 1.4% increase compared to the previous year [5]. Segment Profit Estimates - 'Segment Profit- Foodservice' is projected to be $146.66 million, up from $142.49 million in the same quarter last year [6]. - 'Segment Profit- International' is estimated at $24.41 million, compared to $21.79 million a year ago [6]. - 'Segment Profit- Retail' is expected to reach $157.82 million, an increase from $127.93 million in the previous year [7]. Stock Performance - Over the past month, shares of Hormel have remained unchanged, while the Zacks S&P 500 composite has increased by 2.7% [7].

Two all-new taste experiences reimagine how fans enjoy their favorite pepperoni AUSTIN, Minn., Aug. 12, 2025 /PRNewswire/ -- As consumers continue to seek out bold, adventurous flavors and new ways to elevate everyday eating occasions, the makers of HORMEL® Pepperoni are answering the call with two exciting new additions to its category-defining lineup: HORMEL® Pepperoni with Jalapeño and HORMEL® Pepperoni Dill Pickle Flavored. These bold new flavors are made for today's food lovers — those who crave a litt ...

Core Viewpoint - Hormel Foods Corporation will discuss its third quarter financial results in a conference call scheduled for August 28, 2025, with key executives participating [1]. Group 1: Company Overview - Hormel Foods Corporation is a global branded food company based in Austin, Minnesota, with approximately $12 billion in annual revenue across more than 80 countries [3]. - The company offers a diverse range of brands, including PLANTERS®, SKIPPY®, SPAM®, and HORMEL® NATURAL CHOICE®, among others, totaling over 30 well-known brands [3]. - Hormel Foods is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, recognized for its corporate responsibility and community service efforts [3]. Group 2: Upcoming Events - The company will issue its earnings release before the markets open on August 28, 2025, followed by a conference call at 8 a.m. CT (9 a.m. ET) [1]. - Interested parties can access the webcast, replay, and additional information related to the event on the company's investor website [2].

Catch the SPAM® Musubi Mobile at select Southern California Ralphs locations around National SPAM® Musubi Day for free samples, merch and more AUSTIN, Minn., Aug. 4, 2025 /PRNewswire/ -- The SPAM® brand, in collaboration with Kroger, is turning heads this summer — and they're doing it in style. Earlier this year, SPAM® sushi products rolled out nationwide at Kroger's Family Stores, including Ralphs Grocery Company, and now they're hitting the road to celebrate in true SPAM® brand style! Introducing the firs ...

Core Insights - The author has a strong educational background with a master's degree in Analytics and a bachelor's degree in Accounting, indicating a solid foundation for investment analysis [1] - The author has over 10 years of experience in the investment arena, starting as an analyst and progressing to a management role, showcasing a deep understanding of the industry [1] - The author expresses a personal interest in dividend investing, suggesting a focus on income-generating investments [1] Company and Industry Summary - The author holds long positions in several companies including CTAS, JNJ, WST, O, HRL, LOW, PEP, and ROP, indicating a diversified investment strategy [2] - The article reflects the author's personal opinions and does not involve compensation from the companies mentioned, suggesting an independent analysis [2] - The disclosure emphasizes that past performance is not indicative of future results, highlighting the inherent uncertainties in investment decisions [3]