Sanderson Farms, Inc. (SAFM) Posts Q2 EPS of $2.21

Sanderson Farms, Inc. (NASDAQ: SAFM) reported Q2 EPS of $2.21, $0.53 better than the analyst estimate of $1.68. Revenue for the quarter came in at $660.7 million versus the consensus estimate of $620.99 million.

"The results for our second quarter of fiscal 2014 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 net sales were 6.4 percent higher compared with the second quarter of fiscal 2013, reflecting increased volume offset by slightly lower market prices. Demand for chicken remains strong from our retail grocery store customers, and it appears the relatively high prices of competing protein have shifted some consumer demand to chicken. In addition, while customer traffic through food service establishments remains challenged by macroeconomic factors, relatively high priced beef contributed to improving demand and market prices during the quarter for products produced at our food service plants.

“Our profitability for the second quarter continued to benefit from lower feed costs,” added Sanderson. “Feed costs in flocks processed decreased 19.1 percent compared with last year’s second fiscal quarter. Because of the tight supply of soybeans and the USDA’s lower ending stock estimates for corn, market prices for grain have moved higher since our first quarter. We expect grain prices to remain volatile at least until markets get some visibility on the quantity and quality of this year’s corn and soybean crops, as tight soy supplies and the lowered corn estimates place a premium on favorable growing conditions this summer.”

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

You May Also Be Interested In

• Amphenol (APH) Tops Q1 EPS by 7c, offers guidance
• Norfolk Southern (NSC) Misses Q1 EPS by 12c
• Ribbon Communications (RBBN) Misses Q1 EPS by 2c; offers guidance