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UPDATE: Sanderson Farms Posts Downbeat Q1 Earnings, But Revenue Beats Estimates

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Sanderson Farms Inc. (NASDAQ: SAFM) reported weaker-than-expected earnings for the fiscal first quarter. However, the company's sales exceeded expectations.

The Laurel, Mississippi-based company posted a quarterly profit of $66.5 million, or $2.87 per share, versus a year-ago profit of $28.9 million, or $1.25 per share.

Its sales climbed 14% to $667 million. However, analysts were expecting a profit of $2.99 per share on revenue of $652 million.

Prices for whole chickens climbed around 9.2% y/y in the quarter, while the price for boneless breast meat surged around 6.6%. Jumbo wing prices surged about 52% during the quarter, while the average market price for bulk leg quarters rose around 2.1%.

The feed cost per pound of poultry products processed declined 10.1%. The prices paid for corn meal dropped 9.3%, while soybean meal price shrank 5.5%.

"Our results for the first quarter marked a solid start to the fiscal year," said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. "Poultry market prices were higher compared to the same period a year ago, and our grain costs were lower. Retail grocery store demand for chicken has remained strong, and it appears food service demand may be benefitting from lower priced gasoline."

Sanderson Farms shares fell 1.12% to close at $82.46 yesterday.

Posted-In: profitEarnings News

 

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