Sanderson's stock price jumped 2.66% in premarket trading to $146.03 after the company reported a nearly five-fold increase in fiscal third-quarter net income to $53.4 million, or $2.41 a share, from $11.5 million, or 50 cents a share, in the same period last year.
Revenue for the quarter was $945.2 million, up from $852.4 million a year ago, the company said.
The Mississippi poultry producer and processor said its bottom line was boosted by increases in market prices for jumbo wings, chicken tenders and dark meat.
"Average realized prices for poultry products produced for retail grocery store customers were slightly higher than last year's third fiscal quarter and continue to reflect a more balanced supply and demand environment," said Joe F. Sanderson, Jr., chairman and CEO of Sanderson Farms, in a press release.
The average market price for bulk leg quarters shot up 17.1%, while jumbo wing prices jumped 37.6%. On the other side of the ledger, the cost of feeding its chickens fell during the quarter, with a 4.1% - or 1.1 cent - drop in feed costs per pound of poultry products processed.
The big increase in jumbo wings and leg quarters helped offset a decline in the price of jumbo boneless breast meat, which fell 3.2% during the quarter, the company said.
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