Smithfield Foods Analysts Boost Their Forecasts After Q2 Results

Core Insights - Smithfield Foods, Inc. reported in-line earnings for Q2 with earnings of 55 cents per share, meeting analyst consensus estimates [1] - The company achieved quarterly sales of $3.786 billion, surpassing the analyst consensus estimate of $3.630 billion [1] - For fiscal year 2025, Smithfield updated its financial outlook, showing increased optimism in certain areas while maintaining stability in others [1][2] Sales Growth Expectations - The company expects total sales to grow by a low-to-mid-single-digit percentage compared to fiscal year 2024, excluding sales impacts from Hog Production segment transactions [2] Business Performance - The strong Q2 results reflect the agility and resilience of the business in a dynamic macroeconomic environment, with the Packaged Meats segment meeting consumer demand for quality protein [3] - The Fresh Pork segment is effectively managing a dynamic tariff environment, while the Hog Production segment continues to enhance profitability [3] Stock Performance - Following the earnings announcement, Smithfield Foods shares increased by 2.7%, trading at $25.17 [4] - Analysts adjusted their price targets for Smithfield Foods post-earnings, indicating positive sentiment towards the stock [4] Analyst Ratings and Price Targets - UBS analyst Manav Gupta maintained a Buy rating and raised the price target from $25 to $28.5 [6] - Barclays analyst Benjamin Theurer maintained an Overweight rating and increased the price target from $28 to $30 [6] - Morgan Stanley analyst Dara Mohsenian also maintained an Overweight rating, raising the price target from $29 to $30 [6]