Smithfield Foods Earnings: What Investors Should Watch

Smithfield Foods (NYSE:SFD) will report earnings before markets open on Friday, June 14th. Smithfield Foods, Inc. processes pork and produces hogs through its meat processing and hog production groups. The Company also produces and markets a range of branded food products such as frozen barbecues and chilies, peanuts, and pork products. Smithfield’s products are sold on a wholesale basis, through catalogs, through its retail stores, and via the Internet.

Here is your Cheat Sheet to Smithfield Foods Earnings:

Earnings Expectations: Analysts expect earnings of $0.43 per share on revenues of $3.27 billion. Currently, the company’s P/E ratio stands at 21.48.

Analyst Trends:

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 $0.49 to a profit $0.45. For the current year, the average estimate is a profit of $2, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Smithfield Foods has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012
Revenue ($) in millions 12,488 11,203 12,203 13,094
Diluted EPS ($) -1.35 -0.65 3.12 2.21

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 3,209.20 3,091.30 3,225.80 3,583.30
Diluted EPS ($) 0.49 0.40 0.07 0.58

Past Performance:
Smithfield Foods has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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