Sanderson Farms Earnings: What Investors Should Watch

Sanderson Farms (NASDAQ:SAFM) will report earnings before markets open on Thursday, May 30th. Sanderson Farms, Inc. produces, processes, markets, and distributes fresh and frozen chicken products. The Company also processes, markets, and distributes processed and prepared food items. Sanderson Farms sells its chicken, primarily under the Sanderson Farms brand name, to retailers, distributors, and fast food operators in the southeastern, southwestern, and western United States.

Here is your Cheat Sheet to Sanderson Farms Earnings:

Earnings Expectations: Analysts expect earnings of $0.73 per share on revenues of $610.93 million. Currently, the company’s P/E ratio stands at 27.33.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.04 to a profit $1.5. For the current year, the average estimate is a profit of $3.83, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Sanderson Farms has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,724 1,790 1,925 1,978 2,386
Diluted EPS ($) -2.13 3.99 6.07 -5.74 2.35

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 595.05 624.85 648.38 595.76
Diluted EPS ($) 1.04 1.25 0.41 -0.31

Past Performance:
Sanderson Farms has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]