Smithfield Foods (NASDAQ:SFD) Announces Earnings Results, Beats Expectations By $0.01 EPS

Smithfield Foods (NASDAQ:SFD) issued its quarterly earnings results on Tuesday. The company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.25 by $0.01, Zacks reports. The business had revenue of $3.44 billion for the quarter. The company’s revenue for the quarter was down 8.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.58 EPS.

Here are the key takeaways from Smithfield Foods’ conference call:

• Third-quarter results declined sharply: adjusted operating profit fell to $145 million from $310 million year over year, while adjusted EPS dropped to $0.26 from $0.58, primarily due to weaker fresh pork and hog production results.
• Packaged meats remained resilient, with volume up 0.2%, operating profit rising to $230 million, and margin expanding 80 basis points to 11.6% despite cautious consumers and higher freight, diesel, and resin costs.
• Smithfield lowered its full-year outlook, now expecting sales to decline by low single digits and adjusted operating profit of $900 million to $1 billion; fresh pork is expected to range from a $50 million loss to breakeven, reflecting oversupply, weak demand, export pressure, and tariffs.
• The company completed its acquisition of Nathan’s Famous, which is immediately accretive to adjusted EPS and offers additional retail and food-service growth opportunities; Smithfield also plans to reduce internally produced hogs by approximately 900,000 annually.
• Smithfield reported strong liquidity of $3.5 billion, net debt of 0.5 times adjusted EBITDA, and expects to pay $1.25 per share in annual dividends, but construction timing for its proposed Sioux Falls facility is uncertain after a court decision overturned its conditional-use permit.

Smithfield Foods Stock Up 0.1%

SFD opened at $18.33 on Wednesday. The company has a market capitalization of $7.22 billion, a price-to-earnings ratio of 6.84 and a beta of -0.41. The firm has a 50-day moving average price of $19.99 and a 200-day moving average price of $24.06. Smithfield Foods has a twelve month low of $18.09 and a twelve month high of $29.81.

Smithfield Foods Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Thursday, August 13th were paid a $0.3125 dividend. The ex-dividend date was Thursday, August 13th. This represents a $1.25 annualized dividend and a dividend yield of 6.8%. Smithfield Foods’s dividend payout ratio (DPR) is presently 46.64%.

Key Headlines Impacting Smithfield Foods

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

• Positive Sentiment: Adjusted third-quarter EPS was $0.26, narrowly exceeding the $0.25 consensus estimate. Packaged Meats operating profit increased 1.9% year over year to $230 million, with margins improving to 11.6%. Smithfield Foods Reports Third Quarter Results
• Positive Sentiment: Smithfield completed its acquisition of Nathan’s Famous, strengthening its branded packaged-food portfolio and potentially adding longer-term growth opportunities. Management said Packaged Meats remains on track for a fifth consecutive year with more than $1 billion in operating profit.
• Positive Sentiment: Operating cash flow rose to $365 million for the first nine months, compared with $121 million a year earlier. The company also reiterated an expected annual dividend rate of $1.25 per share and reported substantial liquidity with net debt equal to 0.5 times adjusted EBITDA.
• Neutral Sentiment: Management maintained a constructive view of the packaged-meats operation but expects fourth-quarter pressure from weaker fresh-pork and hog commodity markets. Fiscal 2026 guidance calls for adjusted operating profit of $900 million to $1.0 billion and includes approximately two months of Nathan’s Famous results.
• Negative Sentiment: Third-quarter revenue declined 8.3% to $3.44 billion, while reported EPS fell to $0.23 from $0.63 a year earlier. Operating profit plunged 59.1% to $127 million as Fresh Pork posted an $89 million operating loss, compared with a $10 million profit in the prior-year quarter. Smithfield Foods Cuts Sales Forecast on Soft Pork Demand
• Negative Sentiment: Smithfield lowered its sales outlook to a low-single-digit decline from fiscal 2025, reinforcing concerns that soft pork demand and commodity-market weakness will continue to weigh on results. The company’s shares were already trading near their 52-week low and below both their 50-day and 200-day moving averages, increasing investor sensitivity to disappointing guidance.

Analyst Upgrades and Downgrades

SFD has been the subject of several research analyst reports. Weiss Ratings lowered Smithfield Foods from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, September 29th. Stephens set a $20.00 target price on Smithfield Foods in a research note on Wednesday. Zacks Research downgraded shares of Smithfield Foods from a “hold” rating to a “strong sell” rating in a report on Thursday, August 13th. Bank of America downgraded shares of Smithfield Foods from a “buy” rating to a “neutral” rating and set a $21.00 price target on the stock. in a report on Friday, October 9th. Finally, The Goldman Sachs Group restated a “buy” rating and set a $32.00 price target on shares of Smithfield Foods in a research report on Wednesday, August 12th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $25.67.

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.