Intel stock extends gains after report of possible U.S. government stake
Investing.com - UBS raised its price target on Smithfield Foods (NASDAQ:SFD) to $28.50 from $25.00 on Wednesday, while maintaining a Buy rating following the company’s second-quarter earnings report. The stock, currently trading at $24.52, appears undervalued according to InvestingPro analysis, with analyst targets ranging from $24 to $32.
Smithfield Foods reported second-quarter 2025 earnings per share of $0.55, matching Street expectations but exceeding UBS’s estimate of $0.49 per share. The company posted an adjusted operating profit of $298 million, compared to $326 million in the first quarter of 2025 and $248 million in the second quarter of 2024. With a market capitalization of $9.6 billion and a P/E ratio of 10.8x, the company maintains strong financial metrics, as evidenced by its "GREAT" overall financial health score on InvestingPro.
The food producer achieved an adjusted operating profit margin of approximately 7.9%, down from about 9% in the first quarter but up from roughly 7% in the same period last year. Adjusted EBITDA from continuing operations reached $381 million, compared to $396 million in the previous quarter and $333 million a year earlier. The company’s trailing twelve-month EBITDA stands at $1.5 billion, with a healthy EV/EBITDA ratio of 7.46x.
Smithfield Foods maintained its quarterly dividend of $0.25 per share and ended the quarter with a leverage ratio of 0.7x, unchanged from the previous quarter. The company’s financial position remains stable as it continues to generate strong cash flow, supported by a solid current ratio of 3.11x and an attractive dividend yield of 4.08%.
The company raised its full-year guidance, now expecting total adjusted operating profit between $1,150 million and $1,350 million, up from its previous forecast of $1,100 million to $1,300 million, reflecting improved operational performance across its business segments. For detailed analysis and additional insights, including exclusive ProTips and comprehensive financial metrics, visit InvestingPro.
In other recent news, Smithfield Foods reported strong financial results for the second quarter of 2025. The company’s consolidated sales reached $3.8 billion, reflecting an 11% increase compared to the same period last year. Additionally, Smithfield Foods’ adjusted operating profit rose to $298 million, marking a 20.1% increase from the previous year. These results come despite a challenging consumer spending environment. The company’s performance highlights its ability to navigate economic pressures effectively. Recent developments also include steady stock performance, with no significant changes reported. Investors may find these financial metrics encouraging as they reflect the company’s resilience and growth.
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