This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Lean Quarter at Smithfield

Earnings nearly evaporated in Smithfield Foods' (SFD) fourth quarter, due to a glut of pork and beef in the U.S. and rising raw materials prices.

Smithfield earned $1.1 million, or 1 cent a share, in the quarter, compared with $85.4 million, or 76 cents a share, a year ago. On a continuing operations basis, Smithfield earned 4 cents a share, including a 5-cent charge. Adjusted earnings of 9 cents a share were 2 cents better than the Thomson First Call consensus estimate.

Sales were $2.68 billion, down from $2.90 billion a year ago. Analysts were looking for sales of $2.80 billion in the most recent quarter. By segment, pork sales were $1.73 billion in the latest quarter, down from $1.9 billion a year ago, while beef sales fell to $591.4 million from $607.1 million.

In the hog market, Smithfield saw an average price of $42 per hundredweight, down from $51 a year ago.

"As previously announced, current-year fourth-quarter results were sharply lower than a relatively strong fourth quarter last year, primarily due to depressed pork margins and lower live hog prices as a result of an oversupply of proteins in the U.S. marketplace," the company said. "In addition, higher energy costs materially impacted margins in both the pork and beef segments. "

The company says expansion plans in the U.S. and Europe could hurt near-term earnings, but should position the company better for the future.

"Looking into next year, it will take some time to work through the excess protein in the marketplace. Pork margins continue to be under pressure," the company said. "On the bright side, live hog futures are holding up well into the summer, which bodes well for continued profitability in hog production. With an increased number of cattle available and seasonally strong demand, we should have a better beef processing quarter."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
SFD $0.00 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%
TSLA $266.15 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs