NEW YORK (TheStreet) -- Shares of Sanderson Farms Inc. (SAFM) are up 3.81% to $87.66 in pre-market trade after the poultry producer reported second fiscal quarter results and six months ended April 30, 2014.
Net sales for the second quarter of fiscal 2014 were $660.7 million compared with $621.2 million for the same period a year ago. For the quarter, net income was $51.0 million, or $2.21 per share, compared with net income of $24.4 million, or $1.06 per share, for the second quarter of fiscal 2013.
"The results for our second quarter of fiscal 2014 reflect lower grain costs and continued favorable demand for poultry products," said Joe F. Sanderson, Jr., chairman and CEO of Sanderson Farms, Inc.
"Our net sales were 6.4% higher compared with the second quarter of fiscal 2013, reflecting increased volume offset by slightly lower market prices. Demand for chicken remains strong from our retail grocery store customers, and it appears the relatively high prices of competing protein have shifted some consumer demand to chicken. In addition, while customer traffic through food service establishments remains challenged by macroeconomic factors, relatively high priced beef contributed to improving demand and market prices during the quarter for products produced at our food service plants" Sanderson said.
Net sales for the first six months of fiscal 2014 were $1,245.6 million compared with $1,217.0 million for the same period of fiscal 2013. Net income for the first half of the year totaled $79.9 million, or $3.46 per share, compared with net income of $17.4 million, or 76 cents per share, for the first six months of last year.