UPDATE: Sanderson Farms Posts Downbeat FQ3 Earnings

Sanderson Farms SAFM reported weaker-than-expected profit for its fiscal third quarter. The Laurel, Mississippi-based company posted a quarterly profit of $76.1 million, or $3.30 per share, versus a year-ago profit of $67.9 million, or $2.95 per share. Its revenue surged 4% to $768.4 million. However, analysts were expecting earnings of $3.82 per share on revenue of $789 million. Prices for poultry products climbed 5.3% y/y, while the average price for boneless breast rose 2% y/y. Jumbo wing prices slipped 11% y/y to an average of $1.14 per pound for the quarter. Cash prices for corn delivered to the company fell 28.7% y/y, while the price for soybean meal delivered to the company rose 17.6%. Sanderson Farms accrued $15.5 million during the quarter for its bonus award program and $11 million for a contribution to the company's employee stock ownership plan. “Sanderson Farms' financial results for the third quarter of fiscal 2014 reflect continued favorable market conditions,” said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms. Sanderson Farms shares gained 1.96% to close at $95.12 yesterday.