Poultry producer Sanderson Farms, Inc. (
) on Tuesday posted better-than-expected second quarter earnings
results, as profit rose 34% from last year, fueled by higher
chicken demand in grocery stores.
The Laurel, MS-based company reported second quarter net income
of $35.1 million, or $1.62 per share, compared with $26.2 million,
or $1.25 per share, in the year-ago period.
Revenue jumped 14% from last year, to $487.1 million.
On average, Wall Street analysts expected a much smaller profit
of $1.44 per share, albeit on slightly higher revenue of $489.5
Sanderson Farms shares rose $1.38, or +2.6%, in premarket
The Bottom Line
Shares of SAFM have a 1.11% dividend yield, based on last night's
closing stock price of $53.82. The stock has technical support in
the $48-$50 price area. If the shares can firm up, we see overhead
resistance around the $56-$59 price levels. We would remain on the
Sanderson Farms, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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