Reasons Behind Today's Decline in Hormel Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 28 2025
0mins
Source: Fool
Stock Performance: Hormel's stock (HRL) fell 12.9% in Thursday trading, reaching a low of 18.3% decline shortly after the market opened.
Earnings Report: The company reported non-GAAP earnings per share of $0.35 on sales of $3.03 billion for Q3 2025, missing Wall Street estimates of $0.41 per share on $2.98 billion revenue.
Sales Growth: While organic sales increased by 6% year-over-year and total revenue rose by 4.5%, earnings per share declined by 5.4% compared to the previous year.
Future Guidance: Hormel provided disappointing forward guidance, projecting revenue between $3.15 billion and $3.25 billion for the current quarter, with expected earnings per share between $0.38 and $0.40, indicating a slowdown in growth.
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Analyst Views on HRL
Wall Street analysts forecast HRL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HRL is 27.40 USD with a low forecast of 26.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 24.600
Low
26.00
Averages
27.40
High
30.00
Current: 24.600
Low
26.00
Averages
27.40
High
30.00
About HRL
Hormel Foods Corporation is a global-branded food company. The Company develops, processes, and distributes a range of food products in a variety of markets. Its segments include Retail, Foodservice, and International. The Retail segment is primarily engaged in the processing, marketing, and sale of food products sold predominantly in the retail market. This segment also includes the Company’s MegaMex Foods, LLC joint venture. The Foodservice segment consists primarily of the processing, marketing, and sale of food products to foodservice, convenience store, and commercial customers located in the United States. The International segment processes, markets, and sells its products internationally. This segment also includes the results from the Company’s international joint ventures, international equity method investments, and international royalty arrangements. It has a global presence within several major international markets, including Australia, Brazil, Canada, China, and England.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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