Why Is HORMEL FOODS CORP (HRL) Stock Down Today?

HRL stock is down 7.68% at $21.89 as of the latest trade, reflecting a sharp decline following Hormel Foods’ announcement of a narrowed sales forecast. The company now expects annual organic sales growth of 1-2%, down from its prior 1-4% range. The move came despite Hormel reporting stronger-than-expected Q3 adjusted earnings and raising its full-year adjusted EPS outlook.

What Happened

Hormel Foods reported Q3 adjusted earnings of $0.37 per share, exceeding the $0.35 estimate, and raised its FY2026 adjusted EPS guidance to a range of $1.45 to $1.51 from $1.43 to $1.51. However, the company also cut its annual sales guidance to $12.1 billion to $12.2 billion, below the previous $12.2 billion to $12.5 billion range. Q3 organic net sales declined 2%, missing the $3.039 billion estimate with actual sales at $2.961 billion. The company attributed the sales shortfall to softer demand and said it now expects FY2026 organic net sales growth of 1-2%. Hormel also lowered its GAAP EPS guidance to $1.06 to $1.12 from $1.28 to $1.37.

What The Data Shows

The stock opened at $23.48, down 1.0% from the prior close, and quickly declined to a session low of $21.83 before trading at $21.86 at the close of the latest 5-minute bar. Volume so far is 1.8 million shares, or 0.4 times the 3-month average. The stock is trading near its 52-week low of $19.70 and has printed 21 fresh 52-week lows on the day. Hormel Foods has a market cap of $13.1 billion, a P/E of 28.0, and a dividend yield of 4.92%. Insiders have sold $495,000 in shares over the past 90 days, with the most recent transaction on July 10.

What To Watch

Hormel Foods has not scheduled earnings for the near term. Investors will likely monitor the company’s next quarterly report for signs of recovery in sales and whether the adjusted EPS guidance remains on track. Coverage breadth has expanded in the last 36 hours, with 12 stories from 9 sources.