Smithfield Foods reverses course on soft profitability warning

Shares of pork processor Smithfield Foods SFD.O give up premarket gains to trade down 3.2% at $18.97

Warns of pressure on first-quarter profitability on higher raw material prices, Easter falling later than last year - CFO Mark Hall

Expects strong hog and meat prices

Overshadows annual sales and adjusted operating profit growth forecasts, helped by strong demand for packaged meats at grocery stores and cost-cuts

Expects fiscal 2025 adjusted operating profit to be between $1.10 billion and $1.30 billion, largely above $1.12 billion reported for 2024

Expects total annual net sales to rise in the low- to mid-single-digit percentage range, compared to a 3.4% fall last year

Shares down about 5% since market debut on January 28