Categories Analysis, Consumer

What to expect when Hormel Foods (HRL) reports Q3 2023 earnings

Analysts are projecting revenue of $3.05 billion for the third quarter of 2023

Shares of Hormel Foods Corporation (NYSE: HRL) stayed red on Tuesday. The stock has dropped 12% year-to-date. The food company is slated to report its third quarter 2023 earnings results on Thursday, August 31, before market open. Here’s a look at what to expect from the earnings report:


Analysts are projecting revenue of $3.05 billion for the third quarter of 2023, which would reflect just a slight uptick from the $3.03 billion reported in the same period a year ago. In the second quarter of 2023, net sales decreased 4% year-over-year to $3 billion.


The consensus estimate for EPS in Q3 2023 is $0.41 compared to EPS of $0.40 reported in the prior-year period. In Q2 2023, EPS fell 17% YoY to $0.40.

Points to note

Last quarter, Hormel said that it expects sales and earnings to grow in the latter half of 2023. This growth is expected to be fueled by growth in the Foodservice segment and an inflection in its International segment. The company expects all of its businesses to benefit from higher turkey volumes and improved fill rates in key categories such as bacon, pepperoni, snack nuts, and its SPAM family of products.

In Q2, sales and volume declined across all segments due to lower turkey availability caused by avian influenza. In the Retail segment, brands and products such as Hormel chili, Hormel pepperoni, Applegate frozen items, SKIPPY, and Mary Kitchen witnessed sales growth while Planters snack nuts and Hormel Black Label bacon managed to grow volume, despite lower turkey volumes and elasticities from pricing. This momentum may have gained traction during the third quarter.

Sales and volumes in the Foodservice and International segments were also impacted by lower turkey volumes and export sales as well as lower net pricing. These segments could have seen a pickup in the third quarter.

Hormel is working on improving its margins through pricing actions, cost savings and supply chain improvement programs. The company is also making progress in implementing its GoFWD operating model.

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