Hormel Foods Corporation (NYSE:HRL) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?

Hormel Foods Corporation (NYSE:HRL) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of US$12b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.47, missing estimates by 3.5%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Hormel Foods

Following last week's earnings report, Hormel Foods' nine analysts are forecasting 2025 revenues to be US$12.2b, approximately in line with the last 12 months. Per-share earnings are expected to climb 14% to US$1.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$12.3b and earnings per share (EPS) of US$1.69 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$32.15, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Hormel Foods analyst has a price target of US$37.00 per share, while the most pessimistic values it at US$27.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Hormel Foods' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 6.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Hormel Foods.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hormel Foods' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hormel Foods analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Hormel Foods' balance sheet, and whether we think Hormel Foods is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.