Smithfield Foods, Inc. (NASDAQ:SFD) shares are trading lower on Tuesday.
The company reported second-quarter adjusted earnings per share of 55 cents, in line with the analyst consensus estimate. Quarterly sales of $3.786 billion (+11% year over year) outpaced the Street view of $3.630 billion.
Adjusted operating profit of $298 million, higher than $248 million in the year-ago period. Adjusted operating margin expanded to 7.9%, compared with 7.3% in the year-ago period.
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Adjusted EBITDA from continuing operations totaled $381 million in the quarter under review, compared with $333 million in the year-ago period.
Adjusted EBITDA margin from continuing operations expanded to 10.1% from 9.7%.
“Through our iconic and diversified brand portfolio, our Packaged Meats segment is delivering on consumers’ needs for quality protein at a great value,” said Smithfield President and CEO Shane Smith.
The CEO highlighted that the firm’s Fresh Pork segment is “adeptly navigating a dynamic tariff environment”, with the Hog Production segment growing profitability.
As of June 29, 2025, the company had $3.225 billion of available liquidity consisting of $928 million in cash and equivalents.
On July 31, the firm announced a dividend of 25 cents per share to be paid to shareholders on August 28.
Outlook
For fiscal year 2025, the company has updated its financial outlook, showing increased optimism in some areas while maintaining a steady course in others.
It is reaffirming its expectation for total company sales to grow by a low-to-mid-single-digit percentage compared to fiscal year 2024. This projection specifically excludes the sales impact from the Hog Production segment’s transactions with Murphy Family Farms and VisionAg.
The company is also holding firm on its previous forecasts for the Packaged Meats segment, with an anticipated adjusted operating profit of between $1,050 million and $1,150 million, and for the Fresh Pork segment, which is still expected to generate an adjusted operating profit of between $150 million and $250 million.
However, the company is raising its guidance for the Hog Production segment’s adjusted operating profit, now forecasting it to be in the range of $0 million to $100 million. This positive adjustment has led to an overall increase in the total company’s adjusted operating profit outlook, which is now expected to fall between $1,150 million and $1,350 million.
The company’s plans for capital expenditures remain unchanged, with a budget of $400 million to $500 million dedicated to profit improvement, maintenance, and repair projects. Finally, the effective tax rate is also being reaffirmed at a range of 23.0% to 25.0%.
Price Action: SFD shares are trading lower by 3.08% to $24.40 at last check Tuesday.
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