Chicken producer Sanderson Farms Inc. (SAFM) turned a profit in the third quarter and handily beat estimates, benefiting from lower costs for chicken feed. The company expects to continue to benefit from lower feed grain costs in its fourth quarter.
Like other chicken companies, Sanderson has been recovering from a slump in 2008 when feed and fuel costs soared and demand slowed. Costs for corn and fuel have moderated from their highs in 2008 and the conditions are somewhat better.
For the third quarter, net income was $43.05 million, or $2.09 per share, compared to year-ago loss of $3.65 million, or $0.18 per share. Year-ago results included a charge of $1.7 million, or $0.09 per share for the settlement of a litigation. Analysts were looking for earnings of $1.81 per share. This is the third quarterly earnings surprise in a row. The company has beat earnings estimates by an average 70.9% in the last two quarters.
Net sales rose to $504.85 million from $466.92 million last year, breezing past the consensus estimate of $475.98 million.
Analysts are bullish about the company's earnings prospects in the fourth quarter and the full year. In the last 90 days, earnings per share estimates have been revised up by 16 cents to $1.20 for the fourth quarter and by $1.50 to $3.90 for the full year.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.