Join        Login             Stock Quote

Sanderson Farms (SAFM) Posts 4Q Profit, Sales Jump

 December 18, 2012 06:54 AM

(By Balachander) Sanderson Farms Inc. (NASDAQ: SAFM) swung to a quarterly profit as sales jumped amid higher market prices for poultry products.

Earnings were $9.3 million or $0.41 per share for the fourth quarter ended Oct. 31, compared with a loss of $21.6 million or $0.97 per share in the year-ago quarter.

Sales grew 16 percent to $648.4 million.

Wall Street analysts, on average, expected SAFM to earn 32 cents a share on sales growth of 13.60 percent.

Like many other food processors, Sanderson Farms too has been hit by higher feed costs with macroeconomic conditions and continued high unemployment affecting consumers spending.

[Related -Stock Upgrades And Downgrades: CLWR, CPHD, MS, MYGN, PNRA, RFMD, SAFM, SMG]

The Laurel, Mississippi-based company said boneless breast prices improved, averaging 11.6 percent amid soft food service demand.

Prices paid for corn and soybean meal, Sanderson Farms' key feed ingredients, rose 11.6 percent and 39.7 percent, respectively.

For the full year, Sanderson reported earnings of $2.35 a share on sales increase of 21 percent to $2.39 billion.

"Because we expect demand from our food service customers to remain soft until American consumers regain their confidence and the employment outlook brightens, and in light of continued high prices for grain and uncertainty regarding supply, we have instituted the additional two percent production cut we announced in August of 2012," said CEO Joe Sanderson.

[Related -The 2013 Dividend Achievers]

The company currently plans to leave its production cut in place through fiscal 2013, Sanderson added.

In the preceding third quarter, SAFM earned $1.25 a share on sales of $625.0 million.

SAFM shares ended Monday's regular trading at $49.77. The stock has been trading in the 52-week range between $36.11 and $55.87.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageOn Being A Forced Seller in a Panic

No one wants to be a forced seller in a panic. So how does anyone get into that situation?  Two things: bad read on...

article imageECB's Quantitative Easing - QuitE Wrong

The eurozone has been doing fine without the ECB’s read on...

article imageCan You Invest Better Than Warren Buffett

Warren Buffett's investing strategy is simple: find companies worth investing in read on...

article imageMild Rebound In Housing Market

Expectations for a snapback in home construction from the winter lull were dampened somewhat in the latest read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.