Hormel Foods Rises on Earnings. It’s Been a Brutal Year for the Stock.

Hormel stock was down 26% this year as of Wednesday’s close. (Daniel Acker/Bloomberg)

Key Points

• Hormel Foods’ adjusted earnings for the fiscal fourth quarter were 32 cents per share, exceeding the 30 cents consensus.
• Net sales reached $3.19 billion, a 2% organic increase, but were slightly below the $3.22 billion forecast.
• The company projects fiscal 2026 adjusted earnings of $1.43 to $1.51 per share and 1% to 4% organic net sales growth.

Shares of Hormel Foods jumped Thursday after the packaged food company reported mixed quarterly results but issued a solid outlook for 2026.

Hormel reported adjusted earnings of 32 cents a share for the fiscal fourth quarter, surpassing analysts’ consensus call for 30 cents, according to FactSet. Net sales totaled $3.19 billion, up 2% on an organic basis from last year, but slightly below Wall Street’s forecast for $3.22 billion.

Hormel stock rose 2.6% to $23.89 on Thursday. Shares were down 26% this year as of Wednesday’s close, as the packaged food industry contends with rising input costs, health-conscious shoppers, and increasing consumer frugality.

Hormel forecast solid growth in fiscal 2026, which may have eased some investors’ fears. The company anticipates adjusted per-share earnings of $1.43 to $1.51 in the new year, in line with analysts’ consensus estimate of $1.45. Organic net sales growth is expected to be between 1% and 4%, up slightly at the midpoint from 2% growth in 2025.

“We have taken decisive actions to improve profitability,” interim CEO Jeff Ettinger said, referencing price changes, reductions in administrative expenses, and the company’s multiyear modernization initiative. “These efforts are laying a solid foundation for improved earnings performance in fiscal 2026.”

The fourth quarter was far from perfect, said Max Gumport, senior research analyst at BNP Paribas Research, but the results and outlook were enough to give shares a bump.

“Importantly, we’d note that the company’s FY26 guidance contemplates net sales growth across each reporting segment, despite a pressured consumer,” Gumport wrote.

The firm has a Neutral rating and a $24 price target for Hormel stock.

Write to Nate Wolf at nate.wolf@barrons.com