Frozen chicken processing company Sanderson Farms, Inc. (SAFM) Tuesday reported a profit for the fourth quarter as compared to a loss in the comparable period last year. The turnaround reflected higher net sales, an overall improvement in chicken market and lower grain prices. Results also reflected the absence of certain inventory value adjustments recorded last year. On a per-share basis, earnings topped Street view by three cents.
For the fourth quarter, the Laurel, Mississippi-based company's net profit was $19.80 million or $0.96 per share compared to a net loss of $51.92 million or $2.56 per share in the previous-year period.
On an average, seven analysts polled by Thomson Reuters expected Sanderson to earn $0.93 per share for the quarter. Analysts' estimates typically exclude special items.
The prior-quarter results included live inventory adjustment costs of $35.00 million, processed inventory adjustments totaling $13.10 million, and $1.19 million with regard to hurricane costs. Excluding items, net loss for the 2008 fourth quarter was $21.5 million or $1.06 per share.
Net sales for the fourth quarter this year increased to $469.02 million from $460.23 million in the fourth quarter of fiscal 2008. Analysts expected the company to generate revenues of $451.05 million for the quarter.
"While the overall chicken market improved during our fourth fiscal quarter compared with the same period a year ago, market conditions were less favorable than the third quarter of this fiscal year. However, we continued to benefit from lower grain prices, with improved profitability over the prior year," said the company's chairman and chief executive officer Joe Sanderson.
During the three-month period, costs and expenses fell to $438.08 million from $544.56 million in the same quarter last year. Selling, general and administrative expenses for the quarter increased to $17.35 million from $12.67 million in the 2008-year period.
For full year 2009, Sanderson's net earnings were $82.32 million or $3.99 per share as compared with a net loss of $43.13 million or $2.13 per share a year ago. Net sales for the 12-month period rose to $1.79 billion from $1.72 billion in fiscal 2008. Analysts expected the company to report earnings of $3.98 per share on revenues of $1.77 billion for the year.
Looking ahead, Sanderson said as it moves forward to fiscal 2010, current market conditions reflect ongoing weakness in consumer spending and slow restaurant traffic. However, the company stated that it remains optimistic about the year ahead.
Joe Sanderson said the company sees to place its first live pullets in North Carolina in April 2010 and intends to begin operations there in January 2011.
"While retail grocery trends remain favorable, meaningful improvement in demand for chicken from food service customers will not likely occur until the national employment situation improves and consumers start dining out again. However, we believe the industry, through earlier production cuts now being reflected in reduced egg sets and pullet placements, is well positioned to benefit from and respond to any market improvement," Sanderson added.
In Monday's regular trading session, SAFM closed trading at $42.42 per share on the Nasdaq. In the past 52-week period, the shares have been trading in a range of $26.62 to $49.39.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.