Hormel Foods Reports Disappointing Q3 Earnings, Plans Price Increases

Hormel Foods reported a mixed third-quarter fiscal 2025 performance, with strong top-line growth but disappointing earnings due to steep rises in commodity input costs. The company posted net sales of approximately $3.03 billion, a 4.6% to 6% increase year over year, driven by volume growth in both retail and international segments, despite a decline in segment profits and persistent cost pressures. Profit stood at $183.7 million, or 33 cents per share, below analyst expectations, with adjusted earnings of 35 cents per share also coming in short of estimates. Management highlighted plans for targeted pricing actions to offset the higher costs, while forecasting fourth-quarter sales between $3.15 billion and $3.25 billion and earnings per share between 36 and 38 cents. Interim CEO Jeff Ettinger emphasized a focus on restoring profitable growth, noting that while sales momentum remains strong, profitability challenges are expected to continue due to elevated input costs and competitive pressures. Analysts remain cautious on near-term earnings recovery despite Hormel's strong brand portfolio and ongoing strategic initiatives to innovate and expand globally.