Smithfield Foods, Inc. Fourth Quarter Earnings Sneak Peek

Smithfield Foods, Inc. (NYSE:SFD) will unveil its latest earnings on Thursday, June 16, 2011. Smithfield Foods, Inc. is a hog producer and pork processor, which produces and markets a number of fresh meat and packaged meats products both domestically and internationally.

Smithfield Foods, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst is estimating net income of 83 cents per share. Estimates range from profit of 75 cents per share to net income of 91 cents per share. Over the past three months, the consensus estimate has moved up from 74 cents. Over the past month, the consensus estimate has moved down from 82 cents. For the year, analysts are projecting profit of $2.93 per share, a swing from a loss of 34 cents last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 18 cents, reporting net income of 84 cents per share against a mean estimate of profit of 55 cents. In the second quarter, the company exceeded forecasts by 25 cents with net income of 80 cents versus a mean estimate of profit of 55 cents.

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Wall St. Revenue Expectations: On average, analysts predict $3.24 billion in revenue this quarter, a rise of 11.3% from the year ago quarter. Analysts are forecasting total revenue of $12.28 billion for the year, from last year’s revenue of $11.2 billion.

Analyst Ratings: Analysts seem relatively indifferent about Smithfield Foods, Inc with eight of 15 analysts surveyed maintaining a hold rating. While the average rating for the stock remains a hold, the rating is on steadier footing than three months ago.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 11.4% to $3.19 billion in third quarter of the last fiscal year. The figure rose 6.9% in second quarter from the year earlier and climbed 2.1% in first quarter from the year-ago quarter.

The company raised its gross margin by 4.5 percentage points in the last quarter. Revenue rose 10.5% while cost of sales rose 4.9% to $2.73 billion from a year earlier.

Competitors to Watch: Hormel Foods Corporation (NYSE:HRL), Tyson Foods, Inc. (NYSE:TSN), ZHONGPIN INC. (NASDAQ:HOGS), Pilgrim’s Pride Corp. (NYSE:PPC), ConAgra (NYSE:CAG), RalCorp Holdings (RAL), General Mills (NYSE:GIS), Kraft (NYSE:KFT), H.J. Heinz (NYSE:HNZ) and Seaboard Corporation (AMEX:SEB).

Recent Price Movement: From two months ago, the stock price has fallen $3.90 (-17%) from $23.24 on April 13, 2011 to $19.34 on June 13, 2011.

(Sources: YahooFinance and Xignite Financials)

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