Shares of Hormel Foods Corporation (NYSE: HRL) were up 4% on Wednesday. The company released its preliminary results for the first quarter of 2026, and reaffirmed its outlook for the full year. It also announced the sale of its whole-bird turkey business as part of its portfolio shaping efforts.
Prelim Q1 results
Hormel expects net sales of approx. $3 billion for the first quarter of 2026, up 1% year-over-year. Organic sales is expected to grow 2%, marking the fifth consecutive quarter of year-over-year organic sales growth. Earnings per share is expected to be $0.33 on a reported basis, and $0.34 on an adjusted basis for Q1.
The branded foods provider reaffirmed its organic sales and adjusted EPS outlook for fiscal year 2026. Organic sales growth is expected to be 1-4% for the year while adjusted EPS is estimated to range between $1.43-1.51, representing a growth of 4-10% YoY. HRL also reaffirmed its long-term growth targets of 2-3% organic net sales growth and 5-7% operating profit growth.
Sale of turkey business
Hormel has also agreed to sell its whole-bird turkey business to Life-Science Innovations (LSI). As per the deal, Hormel will sell its whole-bird production facility and feed mill in Minnesota, and associated transportation assets to LSI. The broader range of JENNIE-O branded products and the JENNIE-O brand name remain unaffected by the transaction. The sale is expected to close by the end of the second quarter of 2026, and have a minimal impact on adjusted FY2026 results.