Low Smithfield earnings with weak hog prices
Smithfield Foods experienced a cut in its
earnings forecasts and stock recommendations this week due to increasing hog
supplies and lower prices.
BB & T analyst Heather Jones commented that
"following a number of record profitable quarters, hog production has fallen
into a loss-making business and a quick recovery is not in sight."
further that pork packaging margins, which benefit from lower hog prices, have
not increased enough to counteract hog production losses as product pricing come
under immense pressure due to surplus supplies.
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