Back to top

Image: Bigstock

Things to Know Before Sanderson Farms' (SAFM) Q2 Earnings

Read MoreHide Full Article

Sanderson Farms, Inc. is likely to report an increase in the top and the bottom line, when it reports second-quarter fiscal 2021 numbers on May 27. The Zacks Consensus Estimate for earnings has remained unchanged at $2.29 per share in the past 30 days. The projection shows improvement from a loss of $1.43 per share reported in the year-ago quarter. Notably, Sanderson Farms’ bottom line surpassed the Zacks Consensus Estimate by a wide margin in the trailing four quarters, on average.

The consensus estimate for quarterly revenues is pegged at $1.1 billion, which calls for growth of 29.7% from the prior-year quarter’s reported number.

Sanderson Farms, Inc. Price and EPS Surprise

 

Sanderson Farms, Inc. Price and EPS Surprise

Sanderson Farms, Inc. price-eps-surprise | Sanderson Farms, Inc. Quote

 

Things to Note

Sanderson Farms is gaining from favorable demand trends for products sold at retail grocery stores, as consumers continue adhering to at-home cooking amid the pandemic. In its last earnings call, management highlighted that it is seeing improved demand from food service customers. Lately, the company is also witnessing increased export demand. We believe that the persistence of the trend is likely to have aided fiscal second-quarter performance. Apart from these, the company is benefiting from its efforts to strengthen its product portfolio and enhance capacity.

However, Sanderson Farms highlighted that USDA's projected supply in comparison to demand for both corn and soybeans crops remain extremely tight going into 2021. Incidentally, elevated feed costs are likely to have had put pressure on the company’s performance in the quarter under review.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Sanderson Farms this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Sanderson Farms carries a Zacks Rank #3 and an Earnings ESP of 0.00%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.

Chewy, Inc. (CHWY - Free Report) currently has an Earnings ESP of +133.34% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

e.l.f. Beauty, Inc. (ELF - Free Report) currently has an Earnings ESP of +17.86% and carries a Zacks Rank #3.

Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +10.22% and carries a Zacks Rank #3.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Ulta Beauty Inc. (ULTA) - free report >>

e.l.f. Beauty (ELF) - free report >>

Chewy (CHWY) - free report >>

Published in