Revenue
Earnings
The consensus estimate for earnings per share in Q3 2025 is $0.41, which implies a 10% growth compared to the prior-year quarter. In Q2 2025, adjusted EPS decreased 7% year-over-year to $0.35.
Points to note
As mentioned on its earnings call last quarter, Hormel expects strong growth in the second half of the year, led by its protein-centric products. The company expects meaningful contributions from its turkey portfolio, momentum in its Planters brand, and benefits from its Transform and Modernize initiative. This is a positive sign for Q3.
The Retail segment is expected to benefit from demand for convenient protein solutions and lean high protein foods. Brands like Applegate and Jennie-O are expected to see continued momentum. The Mexican foods portfolio is expected to benefit from a rise in demand for flavorful meals solutions like salsa and guacamole, which is expected to drive growth for brands like Herdez and Wholly.
Hormel remains optimistic about the Planters and SPAM brands, which are expected to see strong growth in the back half of the year. The company expects sequential and year-over-year sales growth for its Planters snack nuts, and continued strong performance for SPAM.
HRL expects low-single-digit net sales growth for its Retail segment and mid-single-digit organic sales growth for its Foodservice segment in the second half of 2025. The International segment is expected to see high-single-digit sales growth in 2H. This bodes well for the third quarter. The company also expects bottom line growth for each segment in the third quarter and second half of the year.
Hormel continues to make progress on its Transform and Modernize initiative and it expects incremental benefits of $100-150 million from T&M in the second half of the year. It also expects to see a significant increase in advertising investments in the back half of the year. The impacts from these factors may be reflected in the third quarter results.