BRFS - Sanderson Farms stock surges on big earnings beat pricing power

Sanderson Farms (NASDAQ:SAFM +2.8%) fueled optimism on packaged food stocks after smashing analyst estimates for earnings on Friday. The Laurel, Mississippi-based poultry producer rocketed past analyst expectations, reporting GAAP EPS of $14.39 and revenue of $1.54B for its fiscal second quarter. Those figures surged beyond consensus estimates by a stunning $6.23 on the bottom line and $150M on the top line.  The bottom line beat was significantly bolstered by effective price increases in the quarter that resulted in a 13.1% increase in average realized selling prices from the prior year. While margins remain under pressure due to higher fuel and grain costs, additional price increases are being pursued to shore up margins moving forward. Encouragingly, demand was noted as improving despite the persistent upward pressure on selling prices.  Shares gained nearly 4% shortly after Friday’s market open. The results also appeared to help drive peers like BRF SA (BRFS +4.6%) and

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Sanderson Farms stock surges on big earnings beat, pricing power