Sanderson Foods tops earnings expectations despite COVID-19 restrictions on restaurants

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Sanderson Farms Inc. topped earnings and revenue expectations for its fiscal third quarter Thursday despite disruptions to the chicken producer’s business from restaurant closures amid the pandemic. The company posted net income of $32.8 million, or $1.48 a share, down from $53.4 million, or $2.41 a share, a year earlier. Revenue for the quarter climbed to $956.5 million from $945.2 million. Analysts surveyed by FactSet expected 81 cents a share in GAAP earnings and $936 million in revenue. “Our financial results for the third quarter of fiscal 2020 reflect extreme market volatility for products sold to food service customers, continued strong demand for products sold to retail grocery store customers, reduced volumes due to planned egg set reductions implemented during the early stages of the pandemic, and lower costs of feed grains,” Sanderson Farms said in its earnings release. The company’s food-service business has been negatively impacted by restrictions on restaurants due to the COVID-19 crisis. Share shave declined 17% over the past three months as the S&P 500 has gained 15%.
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