UPDATE: Sanderson Farms Posts Upbeat FQ2 Earnings

Sanderson Farms SAFM reported a strong rise in its fiscal second-quarter profit. Sanderson's quarterly profit surged to $51 million, or $2.21 per share, versus a year-ago profit of $24.4 million, or $1.06 per share. Its revenue rose 6.4% to $660.7 million. However, analysts were expecting earnings of $1.70 per share on revenue of $625.7 million. Sanderson's gross margin rose to 16.4% from 9.5%, while input costs slipped 1.8%. Its total expenses increased to $582.2 million. Sanderson's feed costs declined 19% y/y, while the average price for boneless breast meat came in flat. Jumbo wing prices also dropped 27.9% in the quarter. Prices paid for corn dropped 34.0%, while prices paid for soybean meal rose 8.8%. The company's press release offered the following comment from Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms: “The results for our second quarter of fiscal 2014 reflect lower grain costs and continued favorable demand for poultry products." Sanderson shares gained 3.81% to $91.00 in pre-market trading.