Smithfield Foods Inc. (SFD) stock soared 6.68% in pre-market trading on Tuesday following the release of its impressive third-quarter results for fiscal year 2025. The company reported better-than-expected earnings and revenue, demonstrating resilient demand for its meat products despite economic challenges.
The leading U.S. pork processor posted adjusted earnings per share of $0.58, surpassing the analyst consensus estimate of $0.50 by 16%. This represents a 9.43% increase from $0.53 per share in the same period last year. Quarterly sales reached $3.747 billion, beating the analyst consensus estimate of $3.601 billion by 4.05% and marking a significant 12.39% increase from $3.334 billion in the prior-year quarter.
Smithfield's strong performance was driven by growth across its business segments. The Packaged Meats segment, the company's largest, saw sales jump 9.1% to $2.09 billion, while Fresh Pork sales increased 12.0% to $2.185 billion. The Hog Production segment also contributed positively with a 10.1% sales growth to $813 million. CEO Shane Smith noted, "Despite persistent higher raw material costs and cautious consumer spending, our Packaged Meats segment posted the second best third quarter profit on record."
In light of the robust results, Smithfield raised its full-year guidance. The company increased the midpoint of its adjusted operating profit outlook to a range of $1.225 billion to $1.325 billion. It also reaffirmed its fiscal year 2025 sales growth projection in the low-to-mid single-digit percentage range compared to fiscal 2024. This optimistic outlook, coupled with the strong quarterly performance, has likely fueled investor enthusiasm, leading to the significant pre-market stock price surge.
Comments