Overview
- Hormel reported adjusted second-quarter earnings of $0.40 per share and sales of $2.973 billion, both above analyst expectations.
- The company affirmed fiscal 2026 adjusted EPS guidance of $1.43–$1.51 and sales guidance of $12.2 billion–$12.5 billion but trimmed GAAP EPS guidance to $1.28–$1.37.
- Hormel completed the sale of its whole-bird turkey business during the quarter, which will reduce reported fiscal 2026 net sales by about $50 million and is expected to have minimal impact on adjusted EPS.
- Reported operating margin fell to 7.3% year-over-year while adjusted operating margin widened to 9.9%, cash on hand rose to $827 million, and the stock jumped roughly 13% on the news.
- Management said consumers and foodservice operators are trading toward lower-cost, convenient protein, a trend that supports organic growth but leaves results vulnerable to continued fuel, logistics and commodity inflation.