Sanderson Farms (SAFM) Misses Q2 EPS by 36c, Revenues Miss

Sanderson Farms (NASDAQ: SAFM) reported Q2 EPS of $1.84, $0.36 worse than the analyst estimate of $2.20. Revenue for the quarter came in at $813.5 million versus the consensus estimate of $841.75 million.

“The results of our second quarter of fiscal 2018 reflect slightly lower feed costs per pound, continued favorable demand for poultry products from retail grocery store customers, higher volume, and a stable export environment,\" said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. “These positive factors were offset by weak food service demand for boneless breast meat and jumbo wings produced at our plants that target food service customers. Because of this weakness, our average sales price per pound decreased during the first half of this fiscal year compared with last year, but improved sequentially during the second fiscal quarter of 2018. Market prices for boneless breast meat improved significantly during March, but then weakened counter seasonally in April as the cold, wet spring weather kept consumers indoors.

“Lower average sales prices were offset during the quarter by more pounds sold, as our new St. Pauls, North Carolina, facility is running at full capacity. Poultry pounds sold increased 3.1 percent during the quarter compared to last year’s second quarter,” added Sanderson.

For earnings history and earnings-related data on Sanderson Farms (SAFM) click here.

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