Hormel Foods CorporationHRL
▲ PositiveCapitalrelevance
Adjusted EPS rose and guidance raised despite sales decline
Impact on stocks 2
Consumer Staples
Hormel Foods CorporationEnergy
Chevron CorpCVX
Mentioned
Hormel Foods reported fiscal third-quarter sales of $2.96 billion, down 2.4%, as volume declined 7.4% and organic net sales fell 1.7%. Adjusted operating margin expanded to 9.0% from 8.4%, and adjusted diluted earnings per share rose to $0.37 from $0.35, while cash flow from operations increased 54% to $241 million. However, GAAP operating margin fell to 3.7% from 7.9%, and GAAP diluted earnings per share dropped to $0.11 from $0.33. The company lowered its fiscal 2026 sales guidance to $12.1 billion to $12.2 billion from $12.2 billion to $12.5 billion, but raised the lower end of adjusted EPS guidance to $1.45 from $1.43, keeping the upper end at $1.51. Foodservice remained the strongest segment with its 12th consecutive quarter of organic sales growth, while retail and international volumes declined. The margin improvement came primarily from lower selling, general and administrative expenses, including an 18% drop in advertising, as adjusted gross margin declined to approximately 15.9% from 16.1%.
Hormel Foods CorporationAdjusted EPS rose and guidance raised despite sales decline
Chevron Corp