Post Earnings Coverage as Sanderson Farms Posted Robust Q4 Results; Outshined Forecasts

Upcoming AWS Coverage on Cal-Maine Foods Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 22, 2016 / Active Wall St. announces its post-earnings coverage on Sanderson Farms, Inc. (NASDAQ: SAFM). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on December 15, 2016. The Laurel, Mississippi-based Company’s quarterly net sales and net income rise on a year-over-year basis; beating market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Sanderson Farms’ competitors within the Food – Major Diversified space, Cal-Maine Foods, Inc. (NASDAQ: CALM), will release its Q2 FY17 financial results on Thursday, December 22, 2016. A press release will be issued at the close of market trading on the same day. AWS will be initiating a research report on Cal-Maine Foods in the coming days.

Today, AWS is promoting its earnings coverage on SAFM; touching on CALM. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=SAFM

http://www.activewallst.com/registration-3/?symbol=CALM

Earnings Reviewed

During Q4 FY16, Sanderson Farms’ net sales increased 16.4% to $790.81 million from $679.59 million reported at the end of Q4 FY15. Net sales numbers outperformed market consensus forecasts of $784.7 million. The increase in net sales in Q4 FY16 reflects an increase in poultry products sales by 13.5% y-o-y, along with a 4.3% y-o-y rise in average sales price for poultry products.

The poultry producer reported net income of $75.96 million, or $3.36 per diluted share, during Q4 FY16 compared to $27.37 million, or $1.22 per diluted share, in the year ago corresponding quarter. The Company’s net income for Q4 FY16 outperformed Wall Street’s expectations of $2.57 per diluted share.

For FY16, the Company’s net sales rose 0.4% to a record $2.82 billion from $2.80 billion in the year ago comparable period. The Company reported record annual sales despite a year-over-year decline in overall poultry market prices. In FY16, Sanderson Farms’ net income came in at $188.96 million, or $8.37 per diluted share, compared to $216.00 million, or $9.52 per diluted share, in FY15.

Operating Metrics

During the three months ended on October 31, 2016, the Company’s cost of sales increased to $630.16 million from $595.84 million in Q4 FY15. For the reported quarter, selling, general, and administrative expenses came in at $44.99 million compared to $40.17 million in Q4 FY15. The Company’s operating income also increased to $115.66 million in Q4 FY16 from $43.59 million, in the prior year’s same quarter.

In FY16, the Company sold a record 3.73 billion pounds of dressed poultry compared to 3.42 billion pounds in FY15. The average sales price for poultry products during for the fiscal year ended in October 31, 2016 was down by 7.9%, or $0.06 per pound from the price level in the fiscal year ended October 31, 2015. This decrease in average sales price for chicken was partially offset by lower feed cost and broilers processed. Additionally, feed cost and broiler processed were lower by $2.4 per pound, or 8.7%, y-o-y in FY16.

Balance Sheet

As of October 31, 2016, the Company had cash and cash equivalents balance of $234.11 million compared to $196.66 million, at the close of books on October 31, 2015. The Company has not reported any long-term debt in its books of accounts. However, Sanderson Farms has a $750 million unsecured revolving line of credit of which $733.7 million was available as on October 31, 2016. Furthermore, the Company has spent $200.9 million on capital expenses and paid $42.9 million in dividends during full year FY16.

Stock Performance

On December 21, 2016, Sanderson Farms’ share price finished the trading session at $93.66, slightly down 0.29%. A total volume of 628.58 thousand shares exchanged hands. The stock has rallied 18.59% and 21.68% in the last one month and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have surged 23.33%. The stock is trading at a PE ratio of 15.03 and has a dividend yield of 1.02%.

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