Hormel Foods Corporation (HRL) Earnings Preview: Key Financial Insights
Hormel Foods Corporation, listed on the NYSE under the symbol HRL, is a well-known player in the food industry, famous for products like Spam and Dinty Moore stew. As the company prepares to release its quarterly earnings on May 29, 2025, Wall Street analysts have set their expectations for an earnings per share (EPS) of $0.35 and projected revenues of approximately $2.9 billion.
The anticipated EPS of $0.35 represents a 7.9% decline from the previous year, as highlighted by Zacks. This decrease is attributed to challenges in turkey supply, which have impacted the company’s earnings. Despite this, Hormel’s revenue is expected to see a slight increase of 0.6% from the same quarter last year, reaching $2.9 billion. This growth is supported by strong demand in the Foodservice segment, bolstered by Hormel’s long-standing customer relationships.
Over the past month, the consensus EPS estimate has remained stable, indicating that analysts have not revised their initial projections. This stability is crucial for investors, as revisions often signal potential stock price movements. Empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance, making the upcoming earnings report a key event for investors.
Hormel’s financial metrics provide further insight into the company’s valuation. With a price-to-earnings (P/E) ratio of approximately 21.93, investors are willing to pay $21.93 for each dollar of earnings. The price-to-sales ratio stands at about 1.39, reflecting the value placed on each dollar of sales. Additionally, the enterprise value to sales ratio is around 1.56, offering a perspective on the company’s valuation relative to its revenue.
The company’s financial health is also evident in its debt-to-equity ratio of approximately 0.36, indicating a relatively low level of debt compared to equity. Hormel’s current ratio of around 2.45 suggests a strong ability to cover short-term liabilities with short-term assets. As the earnings report approaches, the market will closely watch to see if Hormel can deliver a positive EPS surprise, which could significantly influence the stock’s price movement.
