What to expect when Hormel Foods (HRL) reports Q2 2025 earnings results

Shares of Hormel Foods Corporation (NYSE: HRL) stayed green on Tuesday. The stock has gained 6% in the past three months. The branded foods company is scheduled to report its earnings results for the second quarter of 2025 on Thursday, May 29, before the markets open. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $2.91 billion for Hormel in the second quarter of 2025, which represents a slight rise from $2.89 billion reported in the same period last year. In the first quarter of 2025, net sales of $2.99 billion remained flat year-over-year.

Earnings

The consensus estimate for earnings per share in Q2 2025 is $0.35. This compares to adjusted EPS of $0.38 reported in the prior-year quarter. In Q1 2025, adjusted EPS fell 15% YoY to $0.35.

Points to note

Hormel has been facing a dynamic consumer environment but it remains optimistic on its ability to navigate these conditions with the help of its broad product portfolio. The company’s value-added portfolio continues to perform well with strong demand for its flagship and rising brands such as SPAM, Applegate, Jennie-O, and Hormel Black Label. Its efforts in product innovation, marketing, adding new flavors, and finding new uses for products have helped drive volume and sales growth for these brands.

In Q1, the Retail segment benefited from growth in the aforementioned flagship and rising brands but lower sales of snack nuts, caused by production disruptions at the Suffolk facility, led to declines in total sales. The Foodservice segment saw sales growth, helped by strong performance across categories such as premium prepared proteins, turkey, and premium bacon. This segment continues to benefit from having a diverse channel presence. In the International segment, overall sales and volumes were down, as sales and volume growth in China and growth in exports were offset by softness in Brazil and lower commodity turkey exports.

For Q2 2025, Hormel expects net sales in the Retail segment to be comparable to the prior year. The company expects organic sales growth in the mid-single-digits in Foodservice. In addition, it expects high-single-digit sales growth for the International segment.

Hormel expects to see growth in its value-added portfolio and its Transform and Modernize initiative is expected to generate benefits. However, these benefits are expected to be partly offset by higher investments in the business. Although the Planters business is seeing significant market recovery, it is anticipated to face tough year-ago comparisons in Q2 due to strong performance in the previous year. In Q2, Hormel expects its bottom line to be comparable to the first quarter and below prior year.