NEW YORK (TheStreet) -- Sanderson Farms (SAFM) shares are down -5.2% to $90.12 on Tuesday after the company reported third quarter earnings of $3.30 per diluted share, 50 cents short of Bloomberg polled analysts' expectations for the quarter.
Click the video below for a closer look at Sanderson Farms latest quarterly results:
The poultry producer reported a 4% rise in revenue over the previous year to $768.4 million, short of analysts' $787.7 million estimates.
The company failed to meet its own production guidance of 815.1 million pounds of processed poultry, processing only $770.4 million pounds during the quarter.
TheStreet Ratings team rates SANDERSON FARMS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SANDERSON FARMS INC (SAFM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."