The company said fiscal fourth-quarter profit fell 63%, just one week after agreeing to an acquisition by China's Shanghui International.
Smithfield said it earned $29.7 million, or 21 cents a share, for the quarter, compared with a profit of $79.5 million, or 49 cents a share, a year ago. Analysts had been looking for earnings of 43 cents.
Weighing down results was Smithfield's 6% jump in input costs and a 10% increase in expenses, leading gross margins to shrink to 8.5% from 10.7%.Sales beat analysts' expectations, however, rising 3.5% to $3.32 billion. Analysts had estimated sales of $3.27 billion. "Fiscal 2013 was a challenging year in hog production with higher grain prices due to last summer's drought and, more recently, export market disruptions," CEO C. Larry Pope said in a statement. Smithfield said it expects the deal with Shanghui to close in the second half of the year. It is subject to regulatory approval.
Boeing (BA) is reportedly readying a launch of a new expanded 787 Dreamliner. According to speculation, which was first reported on by The Wall Street Journal on Thursday, the new 787-10 is a larger version of Boeing's Dreamliner with many of the same features, but will have longer fuselage and be able to seat 323 passengers. Rumors say the new jet may be announced as early as next week at the Paris Airshow. Singapore Airlines recently committed to buy the new version of the 787 if Boeing builds it. The news comes as the new Airbus A350 made its maiden flight. The Boeing 787-10 would compete with the Airbus A350.
Pandora Media (P) has been sued by Broadcast Music Inc. (BMI) over licensing fees. The suit comes after Pandora rejected BMI's request for the Internet radio company to pay higher licensing fees. BMI argued in the lawsuit, filed in federal court on Thursday, that it was seeking higher fees "consistent with market rates to reflect the explosive growth of the Internet music streaming marketplace."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV