Hormel Foods (NYSE:HRL) posted fiscal Q2 earnings that met analyst expectations, while revenue fell slightly short. The company reported adjusted EPS of $0.35, in line with forecasts, and revenue of $2.9 billion, just under the $2.92 billion consensus. Shares fell over 2% intra-day today.
Organic net sales grew 1%, with the Retail segment delivering a 4% profit increase driven by operational efficiencies despite flat sales. The Foodservice segment saw 4% organic sales growth, but segment profit dropped 6% due to margin pressures. CEO Jim Snee said the company expects a stronger second half, supported by demand for its protein-based product lineup.
Hormel narrowed its full-year organic sales growth guidance to 2–3% (from 1–4%) and trimmed its adjusted EPS forecast to $1.58–$1.68, compared to its prior $1.58–$1.72 range.