Smithfield Foods beat quarterly results estimates on resilient demand for pork

FILE - In this Sept. 6, 2011 file photo, shows a Smithfield ham at a grocery store in Richardson, Texas. (AP Photo/LM Otero)

Smithfield Foods beat analysts’ estimates for fourth-quarter sales and profit on Tuesday, helped by resilient demand for packaged meats and cost-saving efforts, lifting the U.S. pork processor’s shares nearly four per cent higher in premarket trading.

More U.S. consumers are opting to cook at home than dine out as they tighten their budgets amid persistently high cost of living, driving sales for companies such as Smithfield.

Demand surged during the holiday season as shoppers turned to protein-rich staples like pork and processed meats for festive meals, helping lift volumes despite broader pressure on household spending.

The company bought hot dog brand Nathan’s Famous in a US$450 million deal in January.

The company’s sales rose seven per cent to $4.23 billion during the quarter compared to analysts’ expectations of $4.14 billion, according to data compiled by LSEG.

Packaged meat sales rose 4.3 per cent in the quarter ended Dec. 28 from a year earlier. It is a major revenue-generating segment for Smithfield. Fresh pork sales increased 2.1 per cent.

“Looking ahead to 2026, our objective is to again grow sales and profitability and we see a long runway ahead for future growth led by our flagship Packaged Meats segment and iconic brand portfolio,” CEO Shane Smith said.

In February, Tyson Foods raised its annual revenue forecastand beat quarterly profit and sales estimates on strong demand for chicken, countering losses in its beef business.

Smithfield expects total annual sales to be up low-single-digits, compared with analysts’ estimates of 1.26 per cent growth.

The company posted adjusted profit from continuing operations of 83 cents per share, compared with analysts’ expectations of 68 cents per share.

(Reporting by Koyena Das in Bengaluru; Editing by Sriraj Kalluvila and Leroy Leo)