Hormel Foods' Q1 prelim adj EPS beats estimates; co to divest whole-bird turkey business

Overview

• Global branded food company's preliminary Q1 net sales missed analyst expectations

• Prelim adjusted EPS for Q1 beat analyst expectations

• Company announced agreement to sell whole-bird turkey business

Outlook

• Hormel Foods reaffirms fiscal 2026 organic net sales and adjusted EPS guidance

• Company expects minimal impact from turkey business sale on fiscal 2026 metrics

• Hormel targets long-term growth of 2-3% organic sales and 5-7% operating profit

Result Drivers

• ORGANIC SALES GROWTH - Hormel Foods reported a 1.6% organic net sales growth for Q1 2026, marking the fifth consecutive quarter of year-over-year growth

• PORTFOLIO SHAPING - Hormel announced the sale of its whole-bird turkey business to Life-Science Innovations, with minimal impact expected on fiscal 2026 guidance

• STRATEGIC INITIATIVES - CEO Jeff Ettinger stated that Q1 prelim results align with expectations and reflect focus on initiatives for profitable growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for Hormel Foods Corp is $28.00, about 19.5% above its February 17 closing price of $23.44

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn3Xj7b9a

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