Hormel Foods is a reputable food processing company known for producing a diverse range of products including meats, savory snacks, and refrigerated foods. The company is recognized for its commitment to quality and innovation, offering famous brands that cater to various consumer preferences and dietary needs. Hormel Foods not only focuses on manufacturing a wide array of products such as deli meats, bacon, and chili, but it also prioritizes sustainability and responsible sourcing in its operations. Through its extensive distribution networks, the company serves both retail and food service sectors, making it a key player in the global food industry. Read More
As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the shelf-stable food industry, including Hormel Foods (NYSE:HRL) and its peers.
American households are bracing for a significant financial hit as a wave of tariff-induced inflation sweeps across critical consumer goods and services. From the family car to essential baby products, and even the cost of staying healthy, prices are already on an upward trajectory or are poised for substantial hikes.
Shares of private label food company TreeHouse Foods (NYSE:THS)
fell 2.9% in the afternoon session after it extended a decline that began after the company's second-quarter earnings report.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Shares of packaged foods company B&G Foods (NYSE:BGS)
jumped 4% in the afternoon session after the company outlined its strategic transformation plan at the Barclays Global Consumer Staples Conference.
Hormel Foods’ second quarter results were met with a negative market reaction, as higher than expected commodity costs sharply undermined profitability. Management identified three key drivers behind the disconnect between top-line and bottom-line performance: broad-based sales growth across all segments, persistent inflation in pork and beef inputs, and lagging profit recovery in key brands such as Planters. Interim CEO Jeff Ettinger called the margin impact of commodity surges “disappointing,” while CFO Jacinth Smiley described the unexpected cost pressures as significantly worse than anticipated, noting, “Collectively, we experienced approximately 400 basis points of raw material cost inflation in the third quarter alone.”
A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance.
Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Packaged foods company Hormel (NYSE:HRL) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 4.6% year on year to $3.03 billion. On the other hand, next quarter’s revenue guidance of $3.2 billion was less impressive, coming in 1.4% below analysts’ estimates. Its non-GAAP profit of $0.35 per share was 15% below analysts’ consensus estimates.
Shares of meat company Tyson Foods (NYSE:TSN)
fell 2.1% in the afternoon session after peer, Hormel, reported disappointing earnings and lowered its financial outlook for the year.
Shares of private label food company TreeHouse Foods (NYSE:THS)
fell 1.3% in the afternoon session after peer Hormel Foods reported disappointing third-quarter results and lowered its full-year earnings forecast.
Shares of packaged foods company B&G Foods (NYSE:BGS)
fell 1.9% in the afternoon session after a peer in the packaged foods industry, Hormel Foods, issued a disappointing profit outlook.
Shares of packaged foods company Hormel (NYSE:HRL)
fell 13.4% in the morning session after the company reported second-quarter earnings that missed analyst expectations and provided a soft profit outlook.
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