Sanderson Farms Crushes Earnings Estimates
Sanderson Farms (NAS: SAFM) reported earnings on May 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q2), Sanderson Farms beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Margins expanded across the board.
Sanderson Farms logged revenue of $595.0 million. The five analysts polled by S&P Capital IQ predicted a top line of $586.6 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $479.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.04. The eight earnings estimates compiled by S&P Capital IQ averaged $0.85 per share. GAAP EPS were $1.04 for Q2 compared to -$0.74 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.9%, 1,120 basis points better than the prior-year quarter. Operating margin was 6.9%, 1,170 basis points better than the prior-year quarter. Net margin was 4.0%, 740 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $608.5 million. On the bottom line, the average EPS estimate is $1.24.
Next year's average estimate for revenue is $2.32 billion. The average EPS estimate is $3.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 223 members out of 241 rating the stock outperform, and 18 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Sanderson Farms a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sanderson Farms is hold, with an average price target of $50.17.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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