Smithfield Foods (NASDAQ:SFD) Announces Earnings Results

Smithfield Foods (NASDAQ:SFD) issued its quarterly earnings results on Tuesday. The company reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of $0.25 by $0.01, Zacks reports. Smithfield Foods had a net margin of 6.84% and a return on equity of 15.55%.

Smithfield Foods Stock Down 1.8%

Shares of NASDAQ SFD opened at $18.31 on Tuesday. The firm has a market cap of $7.21 billion, a PE ratio of 6.83 and a beta of -0.41. Smithfield Foods has a 12-month low of $18.09 and a 12-month high of $29.81. The company’s fifty day simple moving average is $20.16 and its 200 day simple moving average is $24.09. The company has a quick ratio of 1.34, a current ratio of 2.56 and a debt-to-equity ratio of 0.20.

Smithfield Foods Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Thursday, August 13th were paid a dividend of $0.3125 per share. The ex-dividend date of this dividend was Thursday, August 13th. This represents a $1.25 annualized dividend and a yield of 6.8%. Smithfield Foods’s dividend payout ratio is currently 46.64%.

Trending Headlines about Smithfield Foods

Here are the key news stories impacting Smithfield Foods this week:

• Positive Sentiment: Adjusted third-quarter earnings per share were $0.26, roughly in line with the FactSet estimate and slightly above the $0.25 consensus cited by another report. Smithfield Foods Q3 earnings flash
• Positive Sentiment: The Packaged Meats segment remained resilient: third-quarter operating profit increased to $230 million from $226 million, while its margin improved to 11.6%. Smithfield expects the segment to deliver more than $1 billion in operating profit for a fifth consecutive year. Smithfield Foods reports third-quarter results
• Positive Sentiment: Smithfield completed its acquisition of Nathan’s Famous, expanding its branded packaged-food portfolio. Operating cash flow also rose to $365 million through the first nine months, up from $121 million a year earlier, supporting investment and the anticipated $1.25 annual dividend rate. Smithfield Foods packaged meats profit and outlook
• Neutral Sentiment: Smithfield announced a $250,000 scholarship program and reported a state-fair hunger-relief initiative providing 170,000 meals. These efforts may support its community reputation but are unlikely to materially affect near-term financial results. Smithfield Foods scholarship program
• Negative Sentiment: Consolidated third-quarter sales fell 8.3% to $3.44 billion, while operating profit plunged 59% to $127 million and net income dropped to $91 million from $252 million. Fresh Pork posted an $89 million operating loss, compared with $10 million of profit a year earlier, reflecting softer pork and hog commodity markets. Smithfield Foods earnings results
• Negative Sentiment: Smithfield reduced its outlook to reflect continued commodity pressure, forecasting full-year sales down low-single-digits and Fresh Pork adjusted results ranging from a $50 million loss to breakeven. The weaker upstream performance is the primary reason the overall report is weighing on SFD despite the packaged-meats gains. Smithfield Foods cuts sales forecast

Analyst Ratings Changes

Several research firms have recently weighed in on SFD. The Goldman Sachs Group reissued a “buy” rating and issued a $32.00 price objective on shares of Smithfield Foods in a research report on Wednesday, August 12th. Bank of America lowered Smithfield Foods from a “buy” rating to a “neutral” rating and set a $21.00 target price on the stock. in a research report on Friday, October 9th. Stephens initiated coverage on Smithfield Foods in a research note on Wednesday, September 30th. They set an “equal weight” rating and a $22.00 target price for the company. Zacks Research cut Smithfield Foods from a “hold” rating to a “strong sell” rating in a research note on Thursday, August 13th. Finally, Weiss Ratings downgraded Smithfield Foods from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, September 29th. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $26.00.

Smithfield Foods Company Profile

Smithfield Foods, Inc is a food company engaged in pork production and the manufacture and sale of packaged meats. Its operations include hog production, fresh pork processing, and the preparation of bacon, ham, sausage, hot dogs, deli meats and other ready-to-cook or ready-to-eat products.

The company sells products under brands that include Smithfield, Eckrich, Nathan’s Famous and Farmland, as well as through private-label and foodservice channels. Its products are distributed through grocery retailers, restaurants, foodservice operators and other commercial customers in the United States and international markets.

Founded in Smithfield, Virginia, in 1936, Smithfield Foods expanded through acquisitions and became one of the world’s largest pork processors and hog producers.