Hormel Foods (NYSE:HRL) surprised investors with a preliminary first-quarter profit outlook that cleared analyst hurdles, even as the "Dividend King" moves to shed the most volatile slice of its protein business.
The company expects to report adjusted earnings of $0.34 per share for the quarter, outperforming the Wall Street consensus of $0.32, while net sales are projected to land at approximately $3 billion.
The preliminary results—released ahead of the company's appearance at the 2026 Consumer Analyst Group of New York (CAGNY) conference—show a 2% increase in organic net sales.
This marks Hormel's fifth consecutive quarter of organic growth, a streak interim CEO Jeff Ettinger credited to a "solid start to the year" and disciplined execution in its core branded verticals.
Coinciding with the earnings beat, Hormel confirmed a definitive agreement to sell its whole-bird turkey operations to Life-Science Innovations (LSI).
The sale includes the Melrose, Minnesota production facility and the Swanville feed mill, effectively removing Hormel from the unpredictable commodity turkey processing space.
By offloading these assets while retaining the high-margin JENNIE-O® brand name and its value-added deli products, Hormel is narrowing its focus on branded, shelf-stable, and premium refrigerated proteins that offer more stable margins.
The transaction is expected to close by the end of the second fiscal quarter of 2026.