Shares of Hormel Meals Company (NYSE: HRL) had been up over 1% on Friday. The inventory has dropped 6% year-to-date. The branded meals firm is slated to report its earnings outcomes for the third quarter of 2025 on Thursday, August 28, earlier than market open. Right here’s a have a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $2.98 billion for Hormel within the third quarter of 2025. This means a development of almost 3% from the identical interval a yr in the past. Within the second quarter of 2025, web gross sales remained comparatively flat at $2.90 billion versus the earlier yr.
Earnings
The consensus estimate for earnings per share in Q3 2025 is $0.41, which suggests a ten% development in comparison with the prior-year quarter. In Q2 2025, adjusted EPS decreased 7% year-over-year to $0.35.
Factors to notice
As talked about on its earnings name final quarter, Hormel expects sturdy development within the second half of the yr, led by its protein-centric merchandise. The corporate expects significant contributions from its turkey portfolio, momentum in its Planters model, and advantages from its Rework and Modernize initiative. It is a optimistic signal for Q3.
The Retail phase is predicted to profit from demand for handy protein options and lean excessive protein meals. Manufacturers like Applegate and Jennie-O are anticipated to see continued momentum. The Mexican meals portfolio is predicted to profit from an increase in demand for flavorful meals options like salsa and guacamole, which is predicted to drive development for manufacturers like Herdez and Wholly.
Hormel stays optimistic in regards to the Planters and SPAM manufacturers, that are anticipated to see sturdy development within the again half of the yr. The corporate expects sequential and year-over-year gross sales development for its Planters snack nuts, and continued sturdy efficiency for SPAM.
HRL expects low-single-digit web gross sales development for its Retail phase and mid-single-digit natural gross sales development for its Foodservice phase within the second half of 2025. The Worldwide phase is predicted to see high-single-digit gross sales development in 2H. This bodes properly for the third quarter. The corporate additionally expects backside line development for every phase within the third quarter and second half of the yr.
Hormel continues to make progress on its Rework and Modernize initiative and it expects incremental advantages of $100-150 million from T&M within the second half of the yr. It additionally expects to see a big improve in promoting investments within the again half of the yr. The impacts from these elements could also be mirrored within the third quarter outcomes.
