Earnings Preview: Smithfield Foods

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 |  About: Smithfield Foods Inc. (SFD)
by: Theflyonthewall

Smithfield Foods (NYSE:SFD) is expected to report Q2 earnings before market open Thursday, December 4, with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are looking for a loss of (10c) on revenue of $3.2B. The consensus range is (36c)-2c for EPS, and revenue of $3.05B-$3.31B, according to First Call. Smithfield is down over -70% since reporting disappointing Q1 earnings, largely based on concerns about its debt covenants.

Analyst Views

Stephens Inc. analyst Farha Aslam said the company's hedge positions "will be critical to determining whether or not Smithfield is able to remain in compliance with its debt covenants." Some analysts are predicting the pain in the meat industry, which is suffering from fluctuating costs and reduced demand, will last as long as two to three years.