Smithfield's Q1 Net Doubles, Sales Up 21%, Tops Estimates

Smithfield Foods, the world's largest pork and turkey producer, reported fiscal Q1 net income more than doubled to $54.5 million, or $0.41/share, on 21% higher sales to $3.36B. Adjusted EPS of $0.47 beat analysts' average estimate of $0.42. CEO Larry Pope said he's "generally satisfied" with fiscal Q1 results, "Given the challenges of higher grain costs and the continued adverse fresh pork environment." Sales of Pork grew 28% during the quarter, while beef sales rose 21% and hog production sales increased 32%. CEO Pope expects higher demand for pork during Q2 and Q3 due to seasonality. He said the hog market should remain strong for the next 6 - 12 months based on futures trading. Shares of Smithfield were last up 4.7% to $31.50 in thin pre-market trading, after gaining 1.9% to $30.09 on Wednesday.

Sources: Press release, Bloomberg, MarketWatch
Commentary: 100 Stocks to Offset Rising Food Prices • Low FQ4 Earnings Expectations for Smithfield Foods • Fisher's Buyout Candidates
Stocks/ETFs to watch: SFD. Competitors: HRL, TSN. ETFs: FXG

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