Sanderson faces pressure amid low competing protein prices.
Despite a sharp earnings dip, we do not plan a large change to our $111 fair value estimate after Sanderson Farms reported third-quarter results. Year-to-date net income fell 49% to $105 million as poultry prices and feed costs weighed. Still, the results do not alter our view of Sanderson's normalized performance (3% sales growth and high-single-digit operating margins on average through fiscal 2027), with short-term headwinds yielding to chicken's more favorable health and long-term cost profi...Sanderson Farms is a poultry processing company engaged in the production, processing, marketing and distribution of frozen chicken products, including processed and minimally prepared chicken. The company sells ice-packed, chill-packed, bulk-packed and frozen chicken, in whole, cut-up and boneless form to retailers, distributors, and casual dining operators, and to customers who resell frozen chicken into export markets. The company operates through: Sanderson Farms, Inc. (Production Division), which is engaged in the production of chickens to the broiler stage; and Sanderson Farms, Inc. (Processing Division), which is engaged in the processing, sale and distribution of chicken products.
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