Sanderson Farms Q3 Profit Surges - Quick Facts

(RTTNews) - Sanderson Farms, Inc. (SAFM) reported Thursday that its third-quarter net income was $115.8 million or $5.09 per share, significantly higher than last year's $54.7 million or $2.42 per share.

The company said the net income for the third fiscal quarter reflected an accrual for probable liability for a contribution to the Company's Employee Stock Ownership Plan of 35.9 cents per share, compared to 22.6 cents per share a year ago. The results also reflected an accrual of 41.4 cents per share, for probable liability under the Company's Bonus Award Program, compared to no accrual in fiscal 2016.

Net sales for the third quarter of fiscal 2017 were $931.9 million compared with $728.0 million for the same period a year ago.

On average, analysts polled by Thomson Reuters expected earnings of $4.49 per share on sales of $911.54 million for the quarter. Analysts' estimates typically exclude special items.

The company noted that market prices for chickens sold to retail grocery store customers remained relatively flat at levels that reflect a good supply and demand balance. Jumbo boneless breast meat prices were higher by approximately 24.8 percent, the average market price for bulk leg quarters increased approximately 15.9 percent, and jumbo wing prices were higher by 40.2 percent.

The Company's average feed cost per pound of poultry products processed decreased 1.3 percent.

Joe Sanderson, Jr., chairman and chief executive officer, said, "Sanderson Farms' financial results for the third quarter of fiscal 2017 reflect a continued favorable balance of supply and demand for fresh chicken sold to retail grocery store customers. That balance was reflected in relatively strong market prices for that product during the current third fiscal quarter."