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Hormel Foods Corporation (NYSE: HRL) raised its adjusted diluted earnings per share guidance for fiscal 2026 to a range of $1.45 to $1.51, even as third-quarter organic net sales fell 2% and a cluster of one-time charges pushed the reported operating margin to 3.7%.
The gap between those two data points is where the quarter lives. The case for taking the adjusted view seriously: cash flow from operations came in at $241 million for the quarter, up 54% from the prior year.
Adjusted operating income reached $266 million, producing a 9.0% adjusted operating margin against 8.4% in the comparable period of fiscal 2025.
The charges pulling down GAAP results are discrete: a $56 million loss tied to the sale of its Brazil operations under the Ceratti brand, a $48 million non-cash impairment on a minority investment in Indonesia, and a $38 million litigation settlement.
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