Hormel Foods Corporation reported third-quarter fiscal 2025 results, with revenues of $3.03 billion, marking a 4.6% increase from the prior year and surpassing analyst expectations. However, the company's diluted earnings per share lagged, and it subsequently lowered its full-year 2025 earnings and operating income guidance. This indicates a disconnect between top-line growth and bottom-line performance.
The company revised its GAAP diluted EPS outlook for fiscal 2025 to a range of $1.33 to $1.35, down from the previous guidance of $1.49 to $1.59. This significant reduction is primarily attributed to persistent commodity inflation, particularly in pork and beef inputs, which has sharply undermined profitability. Interim CEO Jeff Ettinger acknowledged the disappointing impact of these commodity surges on margins.
Despite broad-based sales growth across all segments, the higher input costs and lagging profit recovery in key brands like Planters continue to pressure the company's financial performance. The revised outlook highlights the ongoing challenges Hormel Foods faces in navigating a dynamic commodity environment and maintaining its profitability targets.
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