Sanderson Farms today (24 February) claimed a "solid" start to its financial year, with higher first-quarter sales and profits, although earnings missed analyst forecasts.
The US poultry processor booked net income of US$66.5m for the three months to 31 January, up sharply from $28.9m a year earlier.
Earnings per share stood at $2.82. However, a poll from Thomson Reuters showed analysts expected EPS of $2.99.
Sanderson's bottom line was boosted by a halving in interest costs but its operating income was still more than twice higher than the previous year, reaching $103.1m.
Net sales increased 14.1% to $667.4m, helped by higher poultry market prices.
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"Retail grocery store demand for chicken has remained strong, and it appears food service demand may be benefiting from lower priced gasoline," chairman and CEO Joe Sanderson Jr said.
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By GlobalDataSanderson Jr production at its new site in Texas had started on 9 February. Sanderson is conducting due diligence on locations for another plant in North Carolina and "hopes to complete that process soon", he added.
Shares in the company were down 1.72% at $81.04 at 10:27 ET.