Hormel Foods Corporation (HRL) Just Has “Zero Pricing Power,” Says Jim Cramer

We recently published 11 Fresh Stocks On Jim Cramer’s Radar. Hormel Foods Corporation (NYSE:HRL) is one of the stocks Jim Cramer recently discussed.

Hormel Foods Corporation (NYSE:HRL) is an American food products company that primarily sells meat products. Its shares have lost 18% year-to-date, primarily on the back of a major 13% drop in August. Hormel Foods Corporation (NYSE:HRL)’s shares fell after the firm’s fiscal third-quarter earnings report saw it report revenue and earnings of $0.35 and $3.03 billion. Analysts, on the other hand, were expecting $2.98 billion in revenue and $0.41 in EPS. The firm was hammered due to high meat prices that have plagued the US this year. Cramer remarked that Hormel Foods Corporation (NYSE:HRL) just doesn’t have the pricing power to meet investor profit estimates:

“Hormel has zero pricing power. That’s just commodity, zero pricing power. Zero pricing power.

“Well you know, look, beef, cattle prices are just extreme. We’ve never seen this.”

Photo by Lee Myungseong on Unsplash

Hormel Foods Corporation (NYSE:HRL)’s management commented on the pricing issues during the earnings call. Here is what they said:

“We continue to expect top-line growth in the fourth quarter, and we expect our Turkey portfolio, the Planters brand, and our leading positions in the marketplace to continue to be strong growth drivers. For profitability, we have announced inflation-based pricing actions related to the third quarter market, which we expect to partially benefit the fourth quarter and carry into 2026. As the fourth quarter has begun, counter to our expectations, commodity markets have remained elevated across a variety of inputs. With that, we’re assessing additional pricing actions. Our tariff estimate remains unchanged at a $0.01 to $0.02 EPS headwind for fiscal year 2025. Altogether, we expect fourth quarter adjusted EPS to be in the range of $0.38 to $0.40, reflecting a prudent outlook amid ongoing industry dynamics.”

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Disclosure: None. This article is originally published at Insider Monkey.