Shares of Hormel Meals Company (NYSE: HRL) stayed inexperienced on Tuesday. The inventory has gained 6% previously three months. The branded meals firm is scheduled to report its earnings outcomes for the second quarter of 2025 on Thursday, Might 29, earlier than the markets open. Right here’s a take a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $2.91 billion for Hormel within the second quarter of 2025, which represents a slight rise from $2.89 billion reported in the identical interval final yr. Within the first quarter of 2025, web gross sales of $2.99 billion remained flat year-over-year.
Earnings
The consensus estimate for earnings per share in Q2 2025 is $0.35. This compares to adjusted EPS of $0.38 reported within the prior-year quarter. In Q1 2025, adjusted EPS fell 15% YoY to $0.35.
Factors to notice
Hormel has been dealing with a dynamic shopper atmosphere nevertheless it stays optimistic on its means to navigate these circumstances with the assistance of its broad product portfolio. The corporate’s value-added portfolio continues to carry out nicely with robust demand for its flagship and rising manufacturers resembling SPAM, Applegate, Jennie-O, and Hormel Black Label. Its efforts in product innovation, advertising, including new flavors, and discovering new makes use of for merchandise have helped drive quantity and gross sales development for these manufacturers.
In Q1, the Retail phase benefited from development within the aforementioned flagship and rising manufacturers however decrease gross sales of snack nuts, brought on by manufacturing disruptions on the Suffolk facility, led to declines in whole gross sales. The Foodservice phase noticed gross sales development, helped by robust efficiency throughout classes resembling premium ready proteins, turkey, and premium bacon. This phase continues to learn from having a various channel presence. Within the Worldwide phase, total gross sales and volumes had been down, as gross sales and quantity development in China and development in exports had been offset by softness in Brazil and decrease commodity turkey exports.
For Q2 2025, Hormel expects web gross sales within the Retail phase to be similar to the prior yr. The corporate expects natural gross sales development within the mid-single-digits in Foodservice. As well as, it expects high-single-digit gross sales development for the Worldwide phase.
Hormel expects to see development in its value-added portfolio and its Rework and Modernize initiative is anticipated to generate advantages. Nonetheless, these advantages are anticipated to be partly offset by greater investments within the enterprise. Though the Planters enterprise is seeing important market restoration, it’s anticipated to face robust year-ago comparisons in Q2 resulting from robust efficiency within the earlier yr. In Q2, Hormel expects its backside line to be similar to the primary quarter and under prior yr.
