Deutsche Bank Reports EPS to be Higher Than Expected on Sanderson Farms

According to a research report this morning, Sanderson Farms SAFM reports EPS of $1.04, $0.27 higher than estimates. Deutsche Bank explained, “Mgmt. cites caution over foodservice demand and near-term feed costs, but noted strong pricing environment into May and good retail/export demand. Points of focus on the call: recent weakening in chicken complex, which seems to be a bit earlier than the typical seasonal trend, potential for industry expansion.” Sanderson Farms closed Friday at $54.31 as Deutsche Bank maintains its Hold rating and $51 PT.