Smithfield Foods, Inc. (NYSE: SFD) fell 2.33% to $24.35 in the morning hours after the company’s fiscal second-quarter earnings fell 16% as the company saw a considerable increase in input costs.
The company reported a second quarter profit of $120.7 million, or $0.74 a share, down from $143.7 million, or $0.86 a share, a year earlier. Excluding early debt-extinguishment charges and other items, earnings fell to $0.76 a share from $0.80 per share. Sales jumped 10% to $3.31 billion during the quarter. Analysts polled by Thomson Reuters had most recently forecast earnings of $0.70 a share on revenue of $3.21 billion.
Total pork sales–the biggest contributor to the company’s revenue rose 12%, reflecting an increase of 18% for fresh pork and 6.9% for packaged meats.
Packaged foods is a key area of expansion for many meat companies, including Smithfield, as branded and packaged meat products are typically more profitable than sales of commoditized products like live animals and fresh meat.
In the last 1 year period, the company has surged over 37%. The 52 week trading range for the company is $17.58 – $25.13.
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