Sanderson Farms Q4 Profit Surges, Easily Beating View (SAFM)

By Staff,

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Poultry producer Sanderson Farms, Inc. ( SAFM ) on Tuesday said its fourth quarter profit more than doubled from last year, easily beating analyst expectations and sending its shares soaring in premarket trading.

The Laurel, MS-based company reported fiscal fourth quarter net income of $47.8 million, or $2.08 per share, compared with $19.8 million, or 95 cents per share, in the year-ago period.

Revenue rose 13% from last year to $529.1 million.

On average, Wall Street analysts expected a much lower profit of $1.72 per share, on smaller revenue of $521.1 million.

For the full year, the company said net income was $134.8 million, or $6.07 per share, up from $82.3 million, or $3.94 per share, in the period year.

Sanderson Farms shares jumped $2.87, or +6.7%, in premarket trading Tuesday.

The Bottom Line
Shares of Sanderson Farms ( SAFM ) have a 1.60% dividend yield, based on last night's closing stock price of $42.48. The stock has technical support in the $39-$40 price area. If the shares can firm up, we see overhead resistance around the $45-$46 price levels.

Sanderson Farms, Inc. ( SAFM ) is not recommended at this time, holding a DARS™ Rating of 3.3 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 Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: SAFM

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