Shares of Sanderson Farms sold-off on Thursday after the company reported a larger-than-expected loss, partly due to higher commodity costs.
(Corn, an important feed, topped $6.50 a bushel during the quarter, up nearly 80 percent from a year earlier.)
Also slower restaurant sales have plagued Sanderson and other companies, resulting in excess inventories.
”We expect this trend will remain until the national unemployment rate improves," Chief Executive Officer Joe Sanderson said in a statement. "Consumers are simply not dining out as frequently, and restaurant traffic has remained under pressure."
Taking a closer look at the numbers, Sanderson reported a first-quarter loss of $33.6 million, or $1.52 per share, compared with a year-earlier profit of $15.8 million, or 75 cents a share.
Excluding a charge for inventory adjustment, the loss was 87 cents per share. On that basis, Wall Street expected a loss of 33 cents, according to Thomson Reuters I/B/E/S. Revenue, however, rose to $427.7 million from $420.1 million
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