10:40 AM EDT, 05/29/2025 (MT Newswires) -- Hormel Foods ( HRL ) narrowed its full-year guidance, eyeing tariff and consumer dynamics after the food maker's fiscal second-quarter profit fell and revenue came in flat from a year ago.

The owner of the Planters snack nuts brand now expects adjusted earnings to come in between $1.58 a share to $1.68 a share for fiscal 2025, compared with its previous projections of $1.58 to $1.72. The current consensus on FactSet is for non-GAAP EPS of $1.60.

Full-year sales are projected to be in the range of $12 billion to $12.2 billion, compared with the prior forecast of $11.9 billion to $12.2 billion, Hormel said Thursday. Analysts are looking for $12.12 billion.

"In the face of an evolving backdrop, we are responsibly narrowing our fiscal 2025 outlook, which remains largely unchanged," Chief Executive Jim Snee said during an earnings call, according to a FactSet transcript. The tightened profit projection "takes into account our current views on the consumer, tariffs, and lower investment income," he said. Hormel shares were down 1.3% intraday.

Consumer confidence in the US had taken a hit from worries about the impact of tariffs planned by President Donald Trump. Optimism improved in May, the Conference Board said earlier this week. The US Court of International Trade on Wednesday blocked most of Trump's reciprocal tariffs announced last month.

Hormel's narrowed guidance also takes into account the company's expectation for "strong second-half growth," Snee said in a statement. The company sees "meaningful contributions from our turkey portfolio, continued momentum in the Planters brand, growth from our leading positions in the marketplace and ongoing benefits from our Transform and Modernize initiative," he said. Hormel started the three-year initiative to update its supply chain system.

For the three-month period ended April 27, non-GAAP EPS fell to $0.35 from $0.38 a year earlier, but surpassed the $0.34 projected by analysts. Net sales were about $2.9 billion, compared with $2.89 billion a year earlier, while analysts expected $2.9 billion.

Revenue for retail products was largely flat year at $1.78 billion as the impacts of promotion timing offset gains from the company's Mexican portfolio and value-added turkey products. Foodservice revenue rose 0.5% to $936.4 million, buoyed by branded products such as Jennie-O meat. International sales grew 7% to $178.5 million amid increased exports and "robust" growth in China.

"Looking ahead to the second half, we expect each of our segments to deliver strong top line growth," Chief Financial Officer Jacinth Smiley told analysts on the call. "For retail, we expect low single digit net sales growth. For foodservice, we expect mid single digit growth in organic net sales. And for the international segment, we expect continued strong top line performance, resulting in high single digit growth."

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