High feed costs, an overstock of market hogs and softer pork demand are expected to pressure third-quarter earnings for Smithfield Foods. The company is slated to post earnings Thursday.

Analysts mostly projected a loss ranging between 27 cents per diluted share to 31 cents per diluted share. However, Stephens Inc. analyst Farha Aslam's outlook is even worse, projecting a loss of 50 cents per share, compared with earnings of 44 cents per share in the same period last year.

Sales are expected to fall 13 percent to $3.3 billion, based on Smithfield's divestiture of its beef operations to JBS S.A. Excluding the beef business, revenue should increase 5 percent to 6 percent on higher hog prices and upped international sales, according to Aslam.

Meanwhile, operating profit is expected to swing to a loss of $62 million from a $166.3 million profit last year, driven by weakness in hog production, she predicted.

Shares of Smithfield Foods were $5.60, down 33 cents, at the close of trading Monday on the New York Stock Exchange. The 52-week range was $5.40 to $32.18.

"Smithfield shares have been extremely volatile and have taken a beating lately on concerns regarding debt covenants and declining hog prices," Aslam wrote in a note to investors. "We believe the company's hedge positions will be critical to determining whether or not Smithfield is able to remain in compliance with its debt covenants."

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