Hormel Foods (HRL, $47.36) misses fiscal Q3 earnings expectations, while beating revenue estimate
Hormel Foods posted its fiscal third-quarter earnings that missed analyst’ expectations, even as revenue surpassed estimates.
The consumer food company’s sales in the quarter grew +6% from the year-ago period to $3.03 billion, above the consensus of $2.98 billion (as reported in Benzinga). Earnings per share of $0.40 , however, came in below the analyst consensus of $0.41.
Net sales for Refrigerated Foods rose +2% year-over-year and that for Grocery Products climbed +25%, while Jennie-O Turkey Store decreased -8%, and International & other sales fell -5%.
Hormel’s gross margin in the quarter expanded +190 basis points from the year-ago to 16.7%.
For full fiscal year 2022, Hormel boosted its sales outlook to a range of $12.2 billion to $12.8 billion from prior guidance of $11.7 billion to $12.5 billion . The consensus is $12.45 billion.
The company cut its EPS outlook to $1.78 to $1.85, from previous forecast of $1.87 to $1.97. Analysts’ consensus is $1.88.
HRL sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for HRL moved below the 200-day moving average on September 29, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HRL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
The Aroon Indicator for HRL entered a downward trend on October 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where HRL's RSI Oscillator exited the oversold zone, 21 of 38 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 55%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 30 of 61 cases where HRL's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 49%.
The Moving Average Convergence Divergence (MACD) for HRL just turned positive on September 28, 2026. Looking at past instances where HRL's MACD turned positive, the stock continued to rise in 14 of 43 cases over the following month. The odds of a continued upward trend are 33%.
Following a +1.55% 3-day Advance, the price is estimated to grow further. Considering data from situations where HRL advanced for three days, in 135 of 308 cases, the price rose further within the following month. The odds of a continued upward trend are 44%.
HRL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 9 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 10 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.401) is normal, around the industry mean (5.422). P/E Ratio (32.210) is within average values for comparable stocks, (32.504). Projected Growth (PEG Ratio) (1.405) is also within normal values, averaging (8.458). Dividend Yield (0.058) settles around the average of (0.025) among similar stocks. P/S Ratio (0.942) is also within normal values, averaging (4.925).
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating steady price growth. HRL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 84 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HRL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
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General Information
a manufacturer of meat products and other prepared foods
Industry FoodMajorDiversified
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