Hormel Foods Corporation HRL is likely to witness top-line growth when it reports second-quarter fiscal 2026 earnings on May 28. The Zacks Consensus Estimate for revenues is pegged at $2.94 billion, indicating growth of 1.6% from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged over the past 30 days at 35 cents a share, which is in line with the year-ago quarter. HRL has a trailing four-quarter negative earnings surprise of 0.4%, on average.
Hormel Foods Corporation Price, Consensus and EPS Surprise
Hormel Foods Corporation price-consensus-eps-surprise-chart | Hormel Foods Corporation Quote
Factors Likely to Influence HRL’s Upcoming Results
Hormel’s second-quarter performance is likely to have benefited from continued strength in its Foodservice business, which has remained a key growth driver. On its first-quarter earnings call, management highlighted solid demand across premium prepared proteins, branded pepperoni and solutions-based offerings that help operators manage labor and efficiency challenges. The company’s diversified foodservice exposure and direct-selling capabilities are also likely to have supported sales momentum in a difficult operating backdrop. Pricing actions implemented earlier this year may have aided revenue realization and helped offset inflationary pressures.
The International segment is also expected to have contributed to second-quarter performance, backed by strong branded exports and growth in multinational operations. Momentum for the SPAM brand, particularly in export markets and China, is likely to have supported sales trends. HRL’s continued focus on protein-centric innovation and expanding international reach may further aid results.
The Zacks Consensus Estimate for the Foodservice segment’s second-quarter sales is pegged at $982 million, which indicates an increase of 4.9% from the figure recorded in the year-ago period. The consensus mark for the International segment’s sales presently stands at $187 million, suggesting 4.5% growth from $179 million recorded in the year-ago period.
Hormel Foods’ strategic transformation initiatives and portfolio-shaping actions are another likely tailwind. The company continues to prioritize higher-margin, value-added protein categories while advancing supply-chain modernization and productivity efforts. Investments in priority brands such as Jennie-O, Planters and Hormel Gatherings may have supported underlying demand trends.
However, elevated commodity and logistics costs are likely to have remained a headwind in the quarter. Higher input costs across key protein and nut categories, coupled with increased freight expenses and cautious consumer spending, may have pressured margins and weighed on year-over-year earnings performance.
Earnings Whispers for HRL
Our proven model doesn’t conclusively predict an earnings beat for Hormel Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Hormel Foods carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -0.57%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Casey's General Stores CASY currently has an Earnings ESP of +1.02% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Casey's upcoming quarter’s EPS is pegged at $3.44, which implies 30.8% growth year over year. The consensus estimate for the quarterly revenues is pinned at $4.33 billion, which indicates 8.4% growth from the figure reported in the prior-year quarter. CASY delivered a trailing four-quarter earnings surprise of nearly 20%, on average.
Costco Wholesale Corporation COST currently has an Earnings ESP of +1.95% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $69.5 billion, indicating almost 10% rise from the figure reported in the prior-year quarter.
The consensus estimate for Costco’s earnings is pegged at $4.91 per share, implying 14.7% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1.1%, on average.
Dollar General Corporation DG currently has an Earnings ESP of +0.50% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $10.83 billion, which indicates an increase of 3.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar General’s upcoming quarter’s earnings per share is pegged at $1.89, implying 6.2% year-over-year growth. DG delivered a trailing four-quarter earnings surprise of 24.8%, on average.
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Dollar General Corporation (DG): Free Stock Analysis Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
Hormel Foods Corporation (HRL): Free Stock Analysis Report
Casey's General Stores, Inc. (CASY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).