Sanderson Farms, Inc.
) touched a new 52-week high of $95.70 on Jun 2. This new high
represents an improvement over $92.79 hit a couple of days earlier.
Sanderson Farms closed at $95.65 on the Jun 2 trading session,
reflecting a solid year-to-date return of 38.8%. The trading volume
for the session stood at 0.66 million. Upward earnings estimate
revisions for 2014 and 2015 indicate a further upward potential for
this integrated poultry processing company.
Sanderson Farms reported upbeat financial results for
second-quarter fiscal 2014 (ended Apr 30, 2014). Earnings came in
at $2.21 per share, up more than two-fold from the year-ago
quarter's figure of $1.06. Also, the bottom-line results surpassed
the Zacks Consensus Estimate of $1.68 per share by 31.5%. The
upside was driven by higher sales, lower grain costs and improved
demand for poultry products.
Net revenue generated totaled $660.7 million, up 6.4% year over
year and above the Zacks Consensus Estimate of $630 million.
Revenues were boosted by higher demand for poultry products,
partially offset by lower market prices. Cost of goods sold
declined 1.8% year over year, leading to 690 basis points
year-over-year increase in gross margin.
Encouraging second-quarter results along with an average positive
earnings surprise of 15.0% have made investors hopeful of another
quarter of impressive results from Sanderson Farms.
Estimate Revisions Show Potency
Over the last seven days, the Zacks Consensus Estimate for
Sanderson Farms has increased by 4.9% to $7.99 for fiscal 2014 and
11.3% for fiscal 2015. The consensus estimate for fiscal 2014
reflects a year-over-year hike of 40.7%.
Sanderson Farms currently has a $2.2 billion market capitalization
and sports a Zacks Rank #1 (Strong Buy). Some other companies worth
considering in the industry include
Pilgrim's Pride Corporation
The WhiteWave Foods Company
). While Pilgrim's Pride and The WhiteWave Foods Company hold the
same Zacks Rank as Sanderson Farms, JBS carries a Zacks Rank #2
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
SANDERSON FARMS (SAFM): Free Stock Analysis
PILGRIMS PRIDE (PPC): Free Stock Analysis
WHITEWAVE FOODS (WWAV): Free Stock Analysis
JBS SA-ADR (JBSAY): Get Free Report
To read this article on Zacks.com click here.