09:05 AM EST, 02/27/2025 (MT Newswires) -- Hormel Foods' ( HRL ) fiscal first-quarter earnings fell more than Wall Street's estimates but sales came in ahead of expectations, while the food maker maintained its revenue and bottom-line outlook for fiscal 2025.

The owner of the Planters snack nuts brand on Thursday reported adjusted earnings of $0.35 a share for the quarter ended Jan. 26, down from $0.41 the year before and trailing the FactSet-polled consensus of $0.38. Sales ticked down to $2.99 billion from nearly $3 billion last year, but came in ahead of the Street's view for $2.95 billion.

"We achieved solid top-line results and are on-track to deliver on our 2025 expectations," Chief Executive Jim Snee said in a statement. "We made great progress against our key priorities and are confident in our ability to drive long-term, sustainable earnings growth."

The company continues to project adjusted EPS to be in a range of $1.58 to $1.72 and sales to come in between $11.9 billion and $12.2 billion for fiscal 2025. The Street is currently looking for non-GAAP EPS of $1.65 and sales of $12.08 billion.

In the first quarter, revenue from retail products slipped 1.1% to $1.89 billion, mainly due to lower snack nuts sales impacted by production disruptions at the company's Suffolk, Virginia facility. Foodservice sales rose 1.9% to $930.2 million, buoyed by "strong performance" across the premium prepared proteins, turkey, premium bacon and breakfast sausage categories, Hormel said.

International sales dropped 2.4% to $168.5 million as revenue gains in China and growth in exports of products such as the Spam luncheon meat and Skippy peanut butter were more than offset by softness in Brazil and lower commodity turkey exports, according to the company. Volume declined in all three segments, the group said.

"We are pleased with the significant, sequential market recovery the Planters business delivered in the first quarter and expect continued improvements from the brand," according to Snee. "However, as anticipated, the first quarter was pressured as we continued to recover from the snack nuts supply disruption and lapped a full year of whole bird turkey market compression."

The company expects to realize $100 million to $150 million in annual benefits from its transformation plan in the ongoing fiscal year. The program is aimed at transforming its supply chain, minimizing portfolio complexity and investing in data and technology.