Call to the Floor: Sanderson Farms

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

Considering these developments, how should you trade Sanderson?  Don’t make a move until you check out our exclusive conversation with CEO Joe Sanderson.

Watch the video now!

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Trader disclosure: On Feb 24, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (F); Seymour owns (FCX); Seymour owns (GE); Seymour's firm owns (GM); Seymour's firm owns (PBR); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's firm is short (XRT); Finerman's firm is short (IJR); Finerman's Firm Is Long S&P Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's firm owns (AVP); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (BBY); Finerman's Firm And Finerman Own (BP); Finerman owns (DECK); Finerman's firm owns (FCX) puts; Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Finerman's Firm Owns (M); Finerman's Firm And Finerman Own (MSFT); Finerman's Firm Owns (WMT); Terranova Owns (VRTS); Terranova Owns (C); Terranova Owns (UPL); Terranova Owns (ABT); Terranova Owns (MS); Terranova owns (TEVA); Terranova Owns (BAX); Terranova Owns (CVI); Terranova Owns (RSX); Terranova Owns (SU); Terranova Owns (CNQ)

For Joe Terranova
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Reggie Middleton
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Fast Fire SOT
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