Sanderson Farms Q2 Profit More Than Doubles; Results Top Estimates - Quick Facts

(RTTNews) - Sanderson Farms Inc. (SAFM) said that its net income for the second quarter of fiscal 2014 significantly increased to $51.0 million or $2.21 per share, from last year's $24.4 million or $1.06 per share, reflecting lower grain costs and continued favorable demand for poultry products. Analysts polled by Thomson Reuters expected the company to report earnings of $1.70 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the second quarter were $660.7 million compared with $621.2 million for the same period a year ago. Wall Street expected revenues of $625.66 million for the quarter. The 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 its 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 its food service plants.