The 10-second takeaway
For the quarter ended July 29 (Q1), Smithfield Foods missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Smithfield Foods logged revenue of $3.09 billion. The 11 analysts polled by S&P Capital IQ anticipated sales of $3.16 billion on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $3.09 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.40. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. GAAP EPS of $0.40 for Q1 were 18% lower than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.7%, 260 basis points worse than the prior-year quarter. Operating margin was 4.2%, 270 basis points worse than the prior-year quarter. Net margin was 2.0%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.34 billion. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $13.30 billion. The average EPS estimate is $1.88.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 203 members out of 245 rating the stock outperform, and 42 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Smithfield Foods a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smithfield Foods is hold, with an average price target of $23.00.
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