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Smithfield Foods Q3 sales miss on lower pork commodity markets

By Reuters News


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


Reuters Recommended Reads

  • Oct 26 - India's Tata Consumer Products beats quarterly profit view on packaged food demand

  • Oct 24 - Lindt got chocolate price hikes wrong, chairman says after CEO's ouster


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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