Sanderson Farms Q2 Profit Drops - Quick Facts

(RTTNews) - Sanderson Farms Inc. (SAFM) reported that its net income for the second quarter dropped to $6.1 million, or $0.28 per share, from last year's $40.6 million, or $1.83 per share, reflecting the impact of the extraordinary challenges caused by the COVID-19 pandemic.

The latest-period results included a net discrete income tax benefit of about $37.4 million related to the net operating loss carry-back provisions allowed by the CARES Act, which became law during the second fiscal quarter.

Excluding the discrete income tax benefit, the company's net loss for the latest-quarter was $31.3 million or $1.43 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items. Net sales for the second quarter were $844.7 million down from $845.2 million in the prior year. Analysts expected revenues of $890.61 million for the quarter.

Looking ahead to the second half of the fiscal year, the company continues to expect prices paid for feed grain to be lower for the year compared to fiscal 2019.

The company expects its total production during its third and fourth fiscal quarters of 2020 to be up 2.2 percent and down 5.0 percent, respectively, compared to the same quarters of fiscal 2019.