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Hormel Foods Gears Up for Q2 Earnings: Key Insights for Investors
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Hormel Foods Corporation (HRL - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2025 earnings on May 29, before the market opens. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.9 billion, which indicates a 0.6% increase from the year-ago quarter.
The consensus mark for earnings has remained unchanged in the past 30 days at 35 cents per share, which implies a 7.9% decrease from the figure reported in the year-ago quarter. HRL delivered a trailing four-quarter earnings surprise of 0.9%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
Hormel Foods Corporation Price, Consensus and EPS Surprise
Hormel Foods has been benefiting from strong demand in its Foodservice segment, driven by long-standing customer relationships, a differentiated product portfolio and innovative, solution-based offerings. The company anticipates continued growth in the segment, supported by its unique product mix and direct-to-customer approach. For the second quarter of fiscal 2025, management expects mid-single-digit growth in organic net sales within the Foodservice business.
On the last earnings call, the company highlighted that it remains confident in the team’s ability to build on the momentum experienced in the fiscal first quarter, particularly with the flagship and rising brands in the Retail segment. The breadth of its portfolio is likely to have helped Hormel Foods navigate a dynamic consumer environment. The company’s focus on introducing innovative products based around convenience and flavor, alongside increased advertising support for key brands, is likely to have fueled top-line growth in the to-be-reported quarter.
HRL expects strong top-line performance in the International segment, projecting high single-digit growth for the fiscal second quarter. The Zacks Consensus Estimate for fiscal second-quarter revenues in Hormel Foods' International segment is pegged at $178.4 million, indicating a year-over-year increase from $166.8 million reported in the year-ago quarter.
Expansion in the value-added portfolio and progress under its Transform and Modernize initiative are likely to have contributed meaningfully. However, higher spending on talent, technology, data infrastructure and brand support is a hurdle on the way.
The company is likely to have faced a difficult year-over-year comparison in the fiscal second quarter, given the strong brand performance in the prior year. HRL has been closely monitoring ongoing pressure in the turkey supply chain, driven by bird illness impacting poultry availability. While pricing actions have been implemented, the benefits are not expected to materialize until the second half, posing a threat to the performance of its to-be-reported quarter.
Earnings Whispers for HRL
Our proven model does not conclusively predict an earnings beat for Hormel Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Hormel Foods has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The company is likely to register growth in both top and bottom lines when it reports second-quarter 2025 numbers. The Zacks Consensus Estimate for Philip Morris’ quarterly revenues is pegged at $10.2 billion, which indicates 8% growth from the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ quarterly earnings per share is pegged at $1.84, indicating a 15.7% increase from the year-ago period. PM delivered a trailing four-quarter earnings surprise of 3.6%, on average.
Mondelez International, Inc. (MDLZ - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank of 2. The company is likely to register growth in the top line when it reports second-quarter 2025 numbers. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.8 billion, which implies an increase of 5.6% from the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings per share is pegged at 67 cents, indicating a 22.1% decline from the year-ago period. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average.
Keurig Dr Pepper Inc. (KDP - Free Report) currently has an Earnings ESP of +0.12% and a Zacks Rank of 3. The company is likely to register growth in both top and bottom lines when it reports second-quarter 2025 numbers. The Zacks Consensus Estimate for Keurig Dr Pepper’s quarterly revenues is pegged at $4.1 billion, which indicates an increase of 5.6% from the prior-year quarter.
The Zacks Consensus Estimate for Keurig Dr Pepper’s quarterly earnings per share is pegged at 49 cents, up 8.9% from the year-ago period. KDP delivered a trailing four-quarter earnings surprise of 3.1%, on average.
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Hormel Foods Gears Up for Q2 Earnings: Key Insights for Investors
Hormel Foods Corporation (HRL - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2025 earnings on May 29, before the market opens. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.9 billion, which indicates a 0.6% increase from the year-ago quarter.
The consensus mark for earnings has remained unchanged in the past 30 days at 35 cents per share, which implies a 7.9% decrease from the figure reported in the year-ago quarter. HRL delivered a trailing four-quarter earnings surprise of 0.9%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
Hormel Foods Corporation Price, Consensus and EPS Surprise
Hormel Foods Corporation price-consensus-eps-surprise-chart | Hormel Foods Corporation Quote
Things to Know About HRL’s Upcoming Results
Hormel Foods has been benefiting from strong demand in its Foodservice segment, driven by long-standing customer relationships, a differentiated product portfolio and innovative, solution-based offerings. The company anticipates continued growth in the segment, supported by its unique product mix and direct-to-customer approach. For the second quarter of fiscal 2025, management expects mid-single-digit growth in organic net sales within the Foodservice business.
On the last earnings call, the company highlighted that it remains confident in the team’s ability to build on the momentum experienced in the fiscal first quarter, particularly with the flagship and rising brands in the Retail segment. The breadth of its portfolio is likely to have helped Hormel Foods navigate a dynamic consumer environment. The company’s focus on introducing innovative products based around convenience and flavor, alongside increased advertising support for key brands, is likely to have fueled top-line growth in the to-be-reported quarter.
HRL expects strong top-line performance in the International segment, projecting high single-digit growth for the fiscal second quarter. The Zacks Consensus Estimate for fiscal second-quarter revenues in Hormel Foods' International segment is pegged at $178.4 million, indicating a year-over-year increase from $166.8 million reported in the year-ago quarter.
Expansion in the value-added portfolio and progress under its Transform and Modernize initiative are likely to have contributed meaningfully. However, higher spending on talent, technology, data infrastructure and brand support is a hurdle on the way.
The company is likely to have faced a difficult year-over-year comparison in the fiscal second quarter, given the strong brand performance in the prior year. HRL has been closely monitoring ongoing pressure in the turkey supply chain, driven by bird illness impacting poultry availability. While pricing actions have been implemented, the benefits are not expected to materialize until the second half, posing a threat to the performance of its to-be-reported quarter.
Earnings Whispers for HRL
Our proven model does not conclusively predict an earnings beat for Hormel Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Hormel Foods has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Philip Morris International Inc. (PM - Free Report) currently has an Earnings ESP of +0.19% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register growth in both top and bottom lines when it reports second-quarter 2025 numbers. The Zacks Consensus Estimate for Philip Morris’ quarterly revenues is pegged at $10.2 billion, which indicates 8% growth from the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ quarterly earnings per share is pegged at $1.84, indicating a 15.7% increase from the year-ago period. PM delivered a trailing four-quarter earnings surprise of 3.6%, on average.
Mondelez International, Inc. (MDLZ - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank of 2. The company is likely to register growth in the top line when it reports second-quarter 2025 numbers. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.8 billion, which implies an increase of 5.6% from the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings per share is pegged at 67 cents, indicating a 22.1% decline from the year-ago period. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average.
Keurig Dr Pepper Inc. (KDP - Free Report) currently has an Earnings ESP of +0.12% and a Zacks Rank of 3. The company is likely to register growth in both top and bottom lines when it reports second-quarter 2025 numbers. The Zacks Consensus Estimate for Keurig Dr Pepper’s quarterly revenues is pegged at $4.1 billion, which indicates an increase of 5.6% from the prior-year quarter.
The Zacks Consensus Estimate for Keurig Dr Pepper’s quarterly earnings per share is pegged at 49 cents, up 8.9% from the year-ago period. KDP delivered a trailing four-quarter earnings surprise of 3.1%, on average.