Non-recurring sales impact - The company said lower Q2 sales were mainly due to non-recurring sales to Hog Production joint ventures in the prior year and an earlier Easter holiday.
Segment performance - Packaged Meats operating profit and margin declined, while Hog Production operating profit improved sharply.
Analyst coverage and valuation
The current average analyst rating on the shares is "buy", with 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell" recommendations.
The average consensus recommendation for the food processing peer group is "hold."
Wall Street's median 12-month price target for Smithfield Foods Inc is $32.00, about 30.9% above its August 10 closing price of $24.44.
The stock recently traded at 9 times next 12-month earnings, versus a P/E of 10 three months ago.
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