Smithfield Foods shares surge on strong earnings, upbeat outlook

Published 25/03/2025, 10:30
Smithfield Foods shares surge on strong earnings, upbeat outlook

Investing.com - Smithfield Foods, Inc. (NASDAQ:SFD) saw its shares jump 3.52% after the packaged meats company reported robust fourth-quarter results and provided an optimistic outlook for fiscal 2025.

The company posted fourth-quarter revenue of $3.95 billion and adjusted operating profit of $315 million, up from $230 million in the same quarter last year.

For the full fiscal year 2024, Smithfield reported net sales of $14.1 billion and adjusted operating profit of $1.0 billion, nearly quadrupling from $258 million in 2023.

Smithfield’s President and CEO Shane Smith attributed the strong performance to the company’s "resilient business model," highlighting record profits in the Packaged Meats segment and profit growth in Fresh Pork and Hog Production segments.

Looking ahead, Smithfield expects fiscal 2025 adjusted operating profit between $1.1 billion and $1.3 billion, with sales projected to increase in the low-to-mid-single-digit percent range compared to fiscal 2024. The company also announced a quarterly dividend of $0.25 per share.

"We have built a solid foundation that positions us well for the future with a strong balance sheet and ample cash flow to support our growth strategies and increase value for our shareholders," Smith stated.

Smithfield anticipates capital expenditures of $400 million to $500 million in 2025, focusing on profit improvement projects and maintenance. The company expects an effective tax rate between 23.0% and 25.0% for the fiscal year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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