Sanderson Farms Q2 Profit Easily Beats Expectations (SAFM)

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Poultry producer Sanderson Farms, Inc. ( SAFM ) 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 million.

Sanderson Farms shares rose $1.38, or +2.6%, in premarket trading Tuesday.

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 sidelines.

Sanderson Farms, Inc. ( SAFM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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