Smithfield Foods (NASDAQ:SFD) Shares Gap Down on Disappointing Earnings

Key Points

• Smithfield Foods shares opened significantly lower at $24.19 after the company reported quarterly earnings of $0.55 per share, missing the consensus estimate by $0.01.
• The company announced a quarterly dividend of $0.25 per share, with a yield of 4.0% and a payout ratio of 44.05%.
• Recent trading activity showed a 1.5% decrease in the firm's stock price, bringing its current price to $24.89.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $25.17, but opened at $24.19. Smithfield Foods shares last traded at $24.89, with a volume of 210,559 shares trading hands.

The company reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.01). The business's quarterly revenue was up 11.0% compared to the same quarter last year.

Smithfield Foods Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Investors of record on Thursday, August 14th will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, August 14th. This represents a $1.00 annualized dividend and a yield of 4.0%. Smithfield Foods's dividend payout ratio (DPR) is presently 44.05%.

Hedge Funds Weigh In On Smithfield Foods

Several large investors have recently added to or reduced their stakes in the business. CWM LLC bought a new stake in Smithfield Foods in the 2nd quarter worth about $30,000. PNC Financial Services Group Inc. bought a new stake in Smithfield Foods in the 1st quarter worth about $27,000. Amalgamated Bank bought a new stake in Smithfield Foods in the 1st quarter worth about $28,000. Pacer Advisors Inc. bought a new stake in Smithfield Foods in the 1st quarter worth about $34,000. Finally, New York State Teachers Retirement System purchased a new stake in shares of Smithfield Foods during the 2nd quarter worth approximately $55,000.

Smithfield Foods Trading Down 1.5%

The firm has a 50 day moving average of $23.91. The company has a market cap of $9.75 billion and a P/E ratio of 10.92.

About Smithfield Foods

Smithfield Foods, Inc produces and markets a variety of fresh meat and packaged meats products both domestically and internationally. The Company operates in four segments: Pork, Hog Production, International and Corporate, each of which consists of a number of subsidiaries, joint ventures and other investments.

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