Smithfield Foods' Q4 net sales beat estimates on Packaged Meats performance

Overview

• U.S. packaged meats and pork seller's fiscal Q4 net sales rose 7%, beating analyst expectations

• Adjusted EPS for fiscal Q4 was $0.83

• Company announced dividend increase to $1.25 per share for 2026

Outlook

• Smithfield Foods sees fiscal 2026 sales up low-single-digits versus 2025

• Company expects fiscal 2026 adj operating profit of $1.325 bln to $1.475 bln

• Smithfield Foods forecasts fiscal 2026 capital expenditures of $350 mln to $450 mln

Result Drivers

• PACKAGED MEATS MOMENTUM - Co said improved product mix, expanded retail distribution and higher foodservice volume drove Packaged Meats segment performance despite increased input costs and cautious consumer spending

• FRESH PORK EXECUTION - Co said Fresh Pork segment largely mitigated market spread compression and export disruption by adapting to market conditions and expanding sales to adjacent channels

• HOG PRODUCTION OPTIMIZATION - Co said rightsizing strategy and productivity improvements on retained farms drove significant year-over-year improvement in Hog Production segment operating profit

Company press release: ID:nGNX4bz7S0

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for Smithfield Foods Inc is $29.00, about 23.5% above its March 23 closing price of $23.48

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

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