Smithfield Foods Q3 sales miss on lower pork commodity markets
Overview
US packaged meats producer's fiscal Q3 sales fell 8.3% yr/yr, missing analyst expectations
Adjusted EPS and operating profit declined from prior year as commodity markets softened
Company completed Nathan’s Famous acquisition, strengthening packaged meats portfolio
Outlook
Smithfield sees FY 2026 sales down low-single-digits from FY 2025
Company expects FY 2026 adjusted operating profit of $900 mln to $1 bln
Packaged Meats segment FY 2026 adjusted operating profit seen at $1.09 bln-$1.14 bln
Result Drivers
PACKAGED MEATS PROFIT - Co said Packaged Meats segment delivered higher Q3 operating profit and margin yr/yr, offsetting declines elsewhere
SOFTER COMMODITY MARKETS - CEO said upstream segments were challenged by lower pork commodity markets, weighing on results
NATHAN’S FAMOUS ACQUISITION - Co said completion of Nathan’s Famous acquisition bolstered packaged meats brand portfolio
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Sales | Miss | $3.40 bln | $3.69 bln (5 Analysts) |
Q3 Operating Income | $127 mln | ||
Q3 Operating Income Margin | 3.70% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Smithfield Foods, Inc. is $24.00, about 31.1% above its October 26 closing price of $18.31
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)