Canada Packers Q3 revenue falls 13%, slightly misses estimates
Overview
Canada pork producer's Q3 revenue fell 12.7% yr/yr, slightly missing analyst expectations
Adjusted EPS declined sharply yr/yr and missed analyst expectations
Company cites industry-wide margin compression and weaker pork prices as reasons for declines
Outlook
Company expects current challenging market conditions are temporary
Canada Packers anticipates earnings potential will improve as pork markets normalize
Result Drivers
LOWER PORK PRICES AND FX - Co said sales fell mainly due to lower pork cutout values, lack of seasonal price lift, and weaker Japanese yen
INDUSTRY PRESSURE - Co said industry-wide compression in packer and vertically integrated spreads, unfavourable foreign exchange rates and the removal of ham boning impacted gross profit
HIGHER PUBLIC COMPANY COSTS - SG&A expenses rose due to costs from operating as a standalone public entity
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | C$420.70 mln | C$420.85 mln (4 Analysts) |
Q3 Adjusted EPS | Miss | C$0.23 | C$0.36 (4 Analysts) |
Q3 Adjusted EBITDA | C$31.50 mln | ||
Q3 Adjusted EBIT | C$17.60 mln | ||
Q3 Gross Loss | C$7.10 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "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 Canada Packers Inc is C$17.50, about 22.3% above its October 27 closing price of C$14.31
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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.)