Hormel Foods Corp. (HRL) surged 8.57% during Thursday's intraday trading session after the company reported better-than-expected quarterly earnings and provided an optimistic fiscal 2026 outlook.
The packaged food giant posted Q4 adjusted earnings of $0.32 per share, surpassing the consensus estimate of $0.30. While revenue slightly missed expectations at $3.2 billion, investors focused on the company's guidance for fiscal 2026, which calls for adjusted EPS of $1.43-$1.51 on sales of $12.2-$12.5 billion. This outlook aligns with or exceeds analyst projections, signaling confidence in future profitability despite ongoing cost pressures.
Interim CEO Jeff Ettinger highlighted cost-saving initiatives and pricing strategies that are expected to improve earnings performance next year. The strong guidance appears to have overshadowed a Q4 net loss driven by impairment charges, as investors welcomed signs of potential margin recovery in 2026.
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