Sanderson Farms Misses Q2 Views, Shares Decline

Shares of

tumbled 3.5 percent in pre-market trading after the company reported weaker-than-expected results for the fiscal second quarter. The Laurel, Mississippi-based company reported a quarterly profit of $71.2 million, or $3.13 per share, versus a year-ago profit of $51 million, or $2.21 per share. Its revenue gained to $716.6 million from $660.7 million. However, analysts were estimating a profit of $3.32 per share on revenue of $727.3 million. The average estimate among 3 Estimize users was for a loss of $3.52 per share and revenue of $736 million. Its average feed cost per pound of poultry products processed fell 11.8 percent year-over-year in the second quarter. Prices paid for corn and soybean meal dipped 10.5 percent and 21.1 percent, respectively, versus the year-ago quarter. "The results for our second quarter of fiscal 2015 reflect lower grain costs and continued favorable demand for poultry products," said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. "Our profitability for the second quarter also benefited from lower feed costs," added Sanderson. "Feed costs in flocks processed decreased 11.8 percent compared with last year's second fiscal quarter. Planting progress for 2015 grain crops is ahead of long term averages, and optimism for a second consecutive year of favorable production is supporting lower grain costs." Sanderson Farms shares fell 3.5 percent to $81.54 in pre-market trading.