Earnings Highlights and Review: Sanderson Farms Posted a Robust - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Earnings Highlights and Review: Sanderson Farms Posted a Robust Q2 Results; Outshined Forecasts

Research Desk Line-up: DAVIDsTEA Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 19, 2017 / Pro-Trader Daily publishes post-earnings coverage on Sanderson Farms, Inc. (NASDAQ: SAFM) following the Company’s posting of its financial results for the second quarter fiscal 2017 (Q2 FY17) on May 25, 2017. The Laurel, Mississippi-based Company’s quarterly net sales and net income rose on a year-over-year basis; beating market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:


Get more of our free earnings reports coverage from other constituents of the Food – Major Diversified industry. Pro-TD has currently selected DAVIDsTEA Inc. (NASDAQ: DTEA) for due-diligence and potential coverage as the Company announced on June 07, 2017, its financial results for Q1 FY17 which ended on April 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on DAVIDsTEA when we publish it.

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Earnings Reviewed

During Q2 FY17, Sanderson Farms’ net sales increased 15.9% to $802.04 million from $692.09 million reported at the end of Q2 FY16. Net sales numbers outperformed market consensus forecasts of $768.6 million. The increase in net sales in Q2 FY17 reflects an increase in poultry products sales by 11.5% y-o-y along with a 5.0% y-o-y rise in average sales price for poultry products.

The poultry producer reported net income of $66.94 million, or $2.94 per diluted share, during Q2 FY17 compared to $47.60 million, or $2.11 per diluted share, in the year ago same quarter. The Company’s net income for Q2 FY17 also beat Wall Street’s expectations of $2.75 per diluted share.

Operating Metrics

During the three months ended on April 30, 2017, the Company’s cost of sales increased to $655.28 million from $578.28 million in Q2 FY16. For the reported quarter, selling, general, and administrative came in at $43.64 million compared to $40.04 million in Q2 FY16. The Company’s operating income also increased to $103.11 million in Q2 FY17 from $73.77 million in the prior year’s comparable quarter.

In Q2 FY17, the Company processed 1.04 billion pounds of breast poultry during the quarter, up 9.6% from the 945.77 million pounds in the year ago comparable quarter. Sanderson Farms sold 1.04 billion pounds of poultry products in Q2 FY17, rising from 928.9 million pounds during Q2 FY16. Meanwhile, Urner Barry average market prices for boneless breast meat, tenders, jumbo wings, and bulk leg quarters increased by 9.1%, 4.7%, 5.1%, and 17.2% y-o-y, respectively, in Q2 FY17.

Balance Sheet

During the first three months ended on April 30, 2017, the Company reported net cash provided by operating activities of $116.77 million compared to $107.72 million in Q2 FY16. As of April 30, 2017, the Company had cash and cash equivalents balance of $246.28 million compared to $234.11 million, at the close of books on October 31, 2016.

The Company has not reported any long-term debt in its books of accounts. However, on April 28, 2017, the Company entered into a new revolving credit facility to increase, among other things, its available credit to $900.0 million from $750.0 million.

Stock Performance

At the closing bell, on Friday, June 16, 2017, Sanderson Farms’ stock fell 1.62%, ending the trading session at $126.44. A total volume of 635.23 thousand shares have exchanged hands, which was higher than the 3-month average volume of 401.72 thousand shares. The Company’s stock price skyrocketed 33.49% in the last three months, 41.64% in the past six months, and 55.67% in the previous twelve months. Moreover, the stock soared 34.17% since the start of the year. The stock is trading at a PE ratio of 12.97 and has a dividend yield of 0.76%. The stock currently has a market cap of $2.92 billion.

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