Smithfield Foods Inc. Second Quarter Earnings Sneak Peek

Smithfield Foods, Inc. (NYSE:SFD) will unveil its latest earnings on Thursday, December 8, 2011. Smithfield Foods is a hog producer and pork processor that 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 estimate of analysts is for net income of 69 cents per share, a decline of 13.8% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 67 cents during the last month. For the year, analysts are projecting profit of $2.41 per share, a decline of 18% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of 69 cents a share versus the estimate of profit of 68 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 7% in revenue from the year-earlier quarter to $3.21 billion.

Analyst Ratings: Analysts are bullish on this stock with eight analysts rating it as a buy, none rating it as a sell and six rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the first quarter, profit rose 7.6% to $82.1 million (49 cents a share) from $76.3 million (46 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.6% to $3.09 billion from $2.9 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 7.1% in the fourth quarter of the last fiscal year from the year earlier, climbed 10.5% in the third quarter of the last fiscal year from the year-ago quarter and 11.4% in the second quarter of the last fiscal year.

Competitors to Watch: Hormel Foods Corporation (NYSE:HRL), Tyson Foods, Inc. (NYSE:TSN), ZHONGPIN INC. (NASDAQ:HOGS), Pilgrim’s Pride Corp. (NYSE:PPC), Seaboard Corporation (AMEX:SEB), ConAgra (NYSE:CAG) and Monsanto (NYSE:MON).

Stock Price Performance: During September 8, 2011 to December 2, 2011, the stock price had risen $4.12 (20.3%) from $20.27 to $24.39. The stock price saw one of its best stretches over the last year between January 7, 2011 and January 18, 2011 when shares rose for seven-straight days, rising 5.8% (+$1.13) over that span. It saw one of its worst periods between April 27, 2011 and May 11, 2011 when shares fell for 11-straight days, falling 14.8% (-$3.54) over that span. Shares are up $3.76 (+18.2%) year to date.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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