Hormel Foods Trims Full-Year Forecast On Tariff Pressures: Retail Mood Neutral

Hormel Foods Corp (HRL) narrowed its full-year guidance on Thursday, citing the potential impact of U.S. tariffs and uneven consumer demand.

The food company, known for Planters peanuts, Spam canned meat, and Skippy peanut butter, cut the top end of its expected earnings per share to $1.59 from $1.63, while maintaining the lower bound at $1.49.

Adjusted EPS is now forecast between $1.58 and $1.68, down from the prior $1.68 to $1.72 range. Analysts polled by FactSet had expected $1.60.

"In the face of an evolving backdrop, we are responsibly narrowing our fiscal 2025 outlook," CEO Jim Snee said.

Snee said the revised outlook reflects current consumer trends, tariff dynamics, and lower anticipated investment income.

The updated guidance followed a mixed second-quarter report. Net income fell to $180 million, down from $189.3 million a year earlier. Adjusted earnings came in at $0.35 per share, slightly above analyst expectations.

Sales edged up to $3 billion, in line with forecasts. Hormel also raised the lower end of its full-year sales outlook to $12 billion to $12.2 billion.

"Looking ahead to the second half, we expect each of our segments to deliver strong top-line growth," CFO Jacinth Smiley told analysts on the call.

"For retail, we expect low single-digit net sales growth. For foodservice, we expect mid-single-digit growth in organic net sales. And for the international segment, we expect continued strong top-line performance, resulting in high single-digit growth."

On Stocktwits, the retail sentiment for the company was 'neutral.'

Shares of Hormel Foods are down 3.2% this year.

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