Smithfield Foods Q2 sales slightly edge past estimates
Smithfield Foods Q2 sales slightly edge past estimates
Overview
US packaged meats producer's fiscal Q2 net sales fell 2.3% yr/yr, slightly beating analyst expectations
Adjusted diluted EPS for Q2 rose yr/yr to $0.62 from $0.55
Company cut FY 2026 sales and profit outlook citing macroeconomic headwinds
Outlook
Smithfield Foods now sees FY 2026 sales roughly flat vs 2025, was up low-single-digits
Company lowers FY 2026 adj operating profit outlook to $1.225 bln-$1.375 bln from $1.325 bln-$1.475 bln
Smithfield cites cautious consumer spending and higher input costs as weighing on outlook
Result Drivers
NON-RECURRING SALES IMPACT - Co said lower Q2 sales were mainly due to non-recurring sales to Hog Production joint ventures in the prior year and an earlier Easter holiday
SEGMENT PERFORMANCE - Packaged Meats operating profit and margin declined, while Hog Production operating profit improved sharply
Company press release: ID:nGNX7s5ZfF
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Sales | Slight Beat* | $3.70 bln | $3.68 bln (5 Analysts) |
Q2 Operating Income |
| $290 mln |
|
Q2 Operating Income Margin |
| 7.80% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "hold."
Wall Street's median 12-month price target for Smithfield Foods Inc is $32.00, about 30.9% above its August 10 closing price of $24.44
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)