Hormel Foods Corporation (NYSE:HRL) posted better-than-expected second-quarter results on Thursday, helping lift shares 3.74% in premarket trading as investors reacted positively to signs that the company’s turnaround efforts are gaining momentum.
The food producer reported adjusted earnings per share of $0.40, ahead of analyst expectations of $0.36.
Quarterly revenue came in at $2.97 billion, slightly above the consensus estimate of $2.96 billion and up 2.5% from $2.90 billion in the same period last year.
Hormel recorded its sixth consecutive quarter of organic sales growth, with organic net sales increasing 3% during the quarter. The company said each of its three operating segments generated both sales growth and higher segment profit.
“We delivered strong second quarter results marked by profitable growth and improved performance,” said Jeff Ettinger, interim chief executive officer. “We achieved our sixth consecutive quarter of organic top-line growth, expanded gross margins, and attained double-digit growth in adjusted earnings. This was an excellent quarter and gives us even greater confidence in our ability to deliver our full-year outlook.”
For fiscal 2026, Hormel reaffirmed its adjusted EPS guidance range of $1.43 to $1.51. The midpoint of $1.47 is above analyst expectations of $1.45.
The company also maintained its full-year revenue forecast of $12.2 billion to $12.5 billion. The midpoint of $12.35 billion exceeded the consensus estimate of $12.29 billion.
Hormel’s Foodservice division delivered the strongest performance during the quarter, with net sales rising 6% and organic net sales climbing 7%. The segment has now achieved 11 consecutive quarters of organic growth.
Within the Retail business, net sales were unchanged from a year earlier, though segment profit increased 13%.
The International segment posted a 20% increase in segment profit, supported by strong export demand.