Smithfield Foods Earnings: Here’s Why the Stock is Down Now

Smithfield Foods Inc. (NYSE:SFD) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.24%.

Smithfield Foods Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 32.5% to $0.27 in the quarter versus EPS of $0.40 in the year-earlier quarter.

Revenue: Rose 9.76% to $3.39 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Smithfield Foods Inc. reported adjusted EPS income of $0.27 per share. By that measure, the company missed the mean analyst estimate of $0.47. It beat the average revenue estimate of $3.19 billion.

Quoting Management: “The key driver of our business continues to be packaged meats where we achieved solid margins, while growing volume, as well as market share and distribution across a number of our core brands and product categories in the first quarter,” said C. Larry Pope, president and chief executive officer.

Key Stats (on next page)…

Revenue increased 2.18% from $3.32 billion in the previous quarter. EPS increased 28.57% from $0.21 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.64 to a profit $0.62. For the current year, the average estimate has moved down from a profit of $2.58 to a profit of $2.54 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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