Hormel Q3 GAAP EPS Falls 67% on Divestiture Losses, Impairment, and Antitrust Settlement
HRL is trading near its 52-week low of $19.7 (9.3% above the low) on elevated volume (2.3× avg).
Summary
Hormel's Q3 GAAP EPS dropped 67% to $0.11 on divestiture losses, a $48.2M impairment, and a $37.5M antitrust settlement. Adjusted EPS of $0.37 beat last year, but sales missed consensus and full-year guidance was cut.
Key Events · Earnings and Guidance · HRL
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GAAP EPS Falls 67% on One-Time Charges
Q3 FY2026 GAAP diluted EPS was $0.11, down from $0.33 a year ago, driven by a $56.1M Brazil divestiture loss, a $48.2M Garudafood impairment, and a $37.5M antitrust settlement.
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Adjusted EPS Beats but Sales Miss
Adjusted diluted EPS of $0.37 beat last year's $0.35, but net sales fell 2% to $2.96B, missing the $3.04B consensus.
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Full-Year Guidance Cut
Management lowered FY2026 sales guidance to $12.1B–$12.2B from $12.2B–$12.5B, citing weaker volumes and higher costs.
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Segment Weakness in Retail and International
Retail segment profit fell 3.7% to $118.1M and International swung to a $29.2M loss, while Foodservice profit rose 2.7% to $144.5M.
Analysis · HRL · Manufacturing
Hormel's third-quarter GAAP earnings collapsed to $0.11 per share from $0.33 a year ago, driven by three large one-time charges: a $56.1 million loss on the Brazil divestiture, a $48.2 million impairment of its Garudafood investment in Indonesia, and a $37.5 million turkey antitrust litigation settlement. Adjusted EPS of $0.37 actually beat last year's $0.35, but net sales fell 2% to $2.96 billion, missing the $3.04 billion consensus. Management cut full-year sales guidance to $12.1–$12.2 billion from $12.2–$12.5 billion, citing weaker volumes and higher costs. The company is in the middle of a portfolio restructuring — selling Brazil, whole-bird turkey, and a controlling stake in Justin's — while absorbing the costs of those exits. Cash flow from operations rose 47% to $769 million, providing some cushion, but the operational core is showing strain in Retail and International segments.
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In the 30 days to Sep 14, 2026, 29.9% of the 1591 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.24%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, HRL was trading at $21.53 on NYSE in the Manufacturing sector, with a market capitalization of approximately $11.8B. The 52-week trading range was $19.70 to $29.10. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.