Tuesday said third-quarter profit doubled but still missed forecasts, and also offered full-year guidance well below analysts' expectations, triggering a sharp decline in the poultry company's stock price.
The Laurel, Miss.-based company said third-quarter profit doubled, with net income of $33.9 million, or $1.69 a share, compared with $15.4 million, or 78 cents a share, in the year-ago period. Analysts were expecting $1.93 a share, according to a survey by Thomson First Call. Revenue rose to $293.9 million compared with $232.2 million a year ago.
But the company warmed about future business conditions, saying it expected full-year EPS of $4.85 to $5.35 a share. The consensus estimate is for $6.05 a share.
The company said leading indicators of future production showed only "modest growth in chicken supplies," while market prices have dipped below the peak levels of earlier this summer and grain costs have risen.
Shares fell $7.31, or 15.9%, to $38.71 in premarket trading.