How has Hormel Foods' earnings been affected by rising commodity costs?

Hormel Foods' Q3 adjusted EPS declined by 5% year-over-year due to a steep rise in commodity input costs, missing analyst estimates by 14.6%.

What is the outlook for Hormel Foods' earnings in fiscal 2025?

Analysts expect Hormel Foods to deliver an adjusted EPS of $1.37 for the full fiscal 2025, down 13.3% year-over-year, as the company continues to face challenges from rising commodity prices.

Home / Business and Economy / Hormel Foods Plunges 29% YTD as Commodity Costs Squeeze Earnings

Hormel Foods Plunges 29% YTD as Commodity Costs Squeeze Earnings

Q: What is the current stock performance of Hormel Foods?

Hormel Foods' stock prices have plummeted 29% on a year-to-date basis and 26.7% over the past 52 weeks, underperforming the broader market.

14 Nov

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Summary

Hormel Foods stock down 29% YTD, underperforming S&P 500
Q3 earnings miss due to steep rise in commodity input costs
Analysts maintain 'Hold' rating, expect 13.3% drop in FY 2025 EPS

Hormel Foods Plunges 29% YTD as Commodity Costs Squeeze Earnings

As of November 14, 2025, Hormel Foods Corporation, a prominent manufacturer and marketer of meat and food products, has substantially underperformed the broader market over the past year. The company's stock prices have plummeted 29% on a year-to-date basis and 26.7% over the past 52 weeks, compared to the S&P 500 Index's 16.5% gains in 2025 and 14.5% returns over the same period.

Hormel Foods' woes can be attributed to a steep rise in commodity input costs, which have squeezed the company's profitability. In the third quarter of fiscal 2025, Hormel's adjusted earnings per share (EPS) declined by 5% year-over-year to $0.35, missing the consensus estimates by 14.6%. This disappointing performance led to a 13.1% single-day drop in the company's stock price following the release of its Q3 results on August 28.

Looking ahead, analysts expect Hormel Foods to deliver an adjusted EPS of $1.37 for the full fiscal 2025, down 13.3% year-over-year. The company's earnings surprise history has been lackluster, with it meeting the Street's bottom-line estimates only once over the past four quarters and missing the projections on three other occasions.

Despite the challenges, Hormel Foods has managed to maintain solid organic growth across its segments, leading to a 4.6% year-over-year increase in overall net sales to $3 billion in Q3. However, the company's profitability has been hampered by the rising commodity costs, a trend that is expected to continue in the near future.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.