Sanderson Farms swings to net loss in Q3, misses the Street
Chicken company Sanderson Farms, Inc. (Nasdaq: SAFM) said this morning that it swung to a net loss in the third-quarter, while analysts had expected the company to break-even. While the bottom-line missed, revenues narrowly beat.
Sanderson closed a tough quarter, as industry conditions remained soft. While retail and export demand for chicken remained relatively strong during the quarter, the company said casual dining and food service customers were hurt by a significant decline in restaurant traffic due to weak economic conditions and higher fuel prices. Higher feed costs, as corn prices remained volatile as served to drag down the bottom-line.
Shares skidded 10%, or $3.89, to $35.60 ahead of the opening bell. For detailed price information and news stories on Sanderson Farms, click SAFM.
About the Author
Reporter Jennifer Schonberger is based in SmallCapInvestor.com's Washington, D.C. bureau.
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