Hormel Foods Stock Plunges 8.6% as Q3 Revenue Miss Prompts Sales Guidance Cut

Shares of Hormel Foods Corporation tumbled 8.6% in midday trading Thursday after the company missed third-quarter revenue targets and cut its full-year sales outlook. The stock fell as low as $21.83 and changed hands near $21.68, with volume plunging 59% from its 30-day average, according to MarketBeat data.

The selloff erased roughly $1.1 billion in market value, pushing the consumer staples company’s market capitalization to $11.91 billion.

**Earnings Beat, Revenue Miss**

Hormel reported fiscal third-quarter adjusted earnings of $0.37 per share, topping the consensus estimate of $0.35 and up from $0.35 a year earlier. However, net revenue fell 2.4% year over year to $2.96 billion, missing the roughly $3.03 billion analysts had expected.

The top-line shortfall reflected broad weakness. Retail sales declined 4% and International sales dropped 5%, while Foodservice sales managed a 2% increase. Operating cash flow rose 54% to $240.6 million, according to MarketBeat.

Reported profit was also dragged down by charges related to a Brazil divestiture, an investment impairment, and litigation. Those items contributed to a sharp decline in operating income on a GAAP basis.

**Outlook Revised Lower**

Management narrowed the fiscal 2026 adjusted EPS forecast to $1.45-$1.51, up from a prior range of $1.45-$1.50, but slashed the revenue guidance. The new sales forecast stands at $12.1-$12.2 billion, down from $12.2-$12.5 billion. On a GAAP basis, the company lowered EPS guidance to $1.06-$1.12.

In the earnings call, Hormel executives highlighted risks related to volumes and freight costs, according to a Seeking Alpha summary of the call. The company also acknowledged that consumers remain strained by inflation and fuel costs, as reported by Benzinga. That weakness has weighed on demand for packaged meats and other products in retail channels.

**Leadership Change and Insider Sale**

Hormel recently appointed a former Tyson Foods executive as its chief financial officer, a leadership change investors may monitor for its impact on cost controls and portfolio strategy, MarketBeat noted.

Additionally, Director Gary C. Bhojwani sold 20,200 shares of Hormel stock on July 8 at an average price of $24.51, reducing his stake by nearly 39%, according to a Securities & Exchange Commission filing cited by MarketBeat.

**Analyst Reactions**

Wall Street has taken a cautious stance. According to MarketBeat, two analysts rate Hormel a Buy and seven rate it a Hold, giving the stock an average rating of "Hold" with a consensus price target of $26.57.

In recent research notes, Stephens reaffirmed an "equal weight" rating with a $25.00 target. Bank of America raised its price objective to $27.00 but maintained a "neutral" rating. JPMorgan Chase also lifted its target to $26.00 with a "neutral" rating. Weiss Ratings upgraded the stock from "sell (d+)" to "hold (c-)". Goldman Sachs set a $25.00 target.

The stock now trades below its 50-day moving average of $24.87 and its 200-day moving average of $23.41, reflecting the market’s dimmed expectations.

**Broader Context**

Hormel’s results underscore the challenges facing consumer staples companies as persistent inflation and elevated fuel costs squeeze household budgets. The company’s retail and international segments bore the brunt of the slowdown, while foodservice showed modest resilience.

With a debt-to-equity ratio of 0.30 and a current ratio of 1.94, Hormel maintains a conservative balance sheet, but the lowered sales guidance suggests management expects the demand pressure to persist through the remainder of the fiscal year. The stock’s beta of 0.34 indicates low volatility relative to the broader market, providing limited insulation from sector headwinds.

**What’s Next**

Investors will watch for any further signs of volume recovery and the impact of the new CFO’s strategy on margins. The narrowed adjusted EPS range points to some confidence in cost management, but the revenue cut leaves little room for error in a still-challenged consumer environment.