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UPDATE: Sanderson Farms Posts Upbeat FQ2 Earnings

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Sanderson Farms (NASDAQ: 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.

Posted-In: profitEarnings News

 

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