Smithfield Foods Stock Slips Despite Q4 Earnings Beat: Retail Bearishness Softens

Shares of Smithfield Foods (SFD) fell 2% on Tuesday even as the packaged foods company reported better-than-expected fiscal fourth-quarter results, lifting retail sentiment.

Smithfield’s Q4 adjusted earnings per share stood at $0.52, beating the consensus of $0.33. Its revenue came in at $3.95 billion, well above the consensus estimate of $3.44 billion.

For Q4, it had adjusted operating profit of $315 million, up from adjusted operating profit of $230 million in the fourth quarter of 2023.

“We are excited to return to the U.S. public markets as a leading packaged meats company with strong profitability and a solid balance sheet to support our future growth,” said Smithfield president and CEO Shane Smith.

“In fiscal 2024, we delivered operating profit of more than $1.1 billion and adjusted operating profit of $1.0 billion, up nearly four times from adjusted operating profit of $258 million in 2023.”

The company saw record profits in its Packaged Meats segment, growth in Fresh Pork segment and a $600 million increase in Hog Production segment profitability, it said.

According to BofA, Smithfield is the largest vertically integrated U.S. hog producer and fresh pork processor.

“Looking ahead, we are focused on continuing to execute the strategies that have more than doubled our Packaged Meats segment operating profit over the past ten years as well as our strategies to further optimize our Fresh Pork and Hog Production operations, Smith said.

Sentiment on Stocktwits improved from ‘extremely bearish’ to ‘bearish.’ Message volume remained ‘high.’

SFD sentiment meter and message volume on March 25

For 2025, Smithfield sees revenue growth in the low-to-mid-single-digit percentage range and fiscal adjusted operating profit between $1.1 billion and $1.3 billion.

Following the earnings, Morgan Stanley assumed coverage of Smithfield with an ‘Overweight’ rating and a $28 price target.

According to the analyst, the current valuation overly discounts tariff-related export risks while underappreciating the company's momentum in packaged meats and a "constructive outlook" for hog production, The Fly reported.

Smithfield received some positive reviews from Wall Street brokerages before the earnings.

BofA analyst Peter Galbo initiated coverage of Smithfield Foods with a ‘Buy’ rating and $28 price target, citing consumers continuing to seek protein rich diets that are likely to favor Smithfield's offerings, particularly pork.

Smithfield Foods stock is down 3% year-to-date.

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