US Stocks Rise on Thursday

Sanderson Farms posts earnings beat

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May 30, 2019
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U.S. stocks were in positive territory on Thursday. The Dow Jones Industrial Average rose 0.17% to 25,169.88, the S&P 500 index swelled 0.21% to  2,788.86 and the Nasdaq Composite Index advanced 0.27% to 7,567.72.

Shares of Sanderson Farms Inc. (SAFM, Financial) climbed more than 4% on Thursday after the company announced second-quarter results. Revenue grew 3.9% from the prior-year quarter to $845.23 million, falling $1.47 million short of expectations. Earnings of $1.83 per share topped estimates by 3 cents.

“Financial results for our second quarter of fiscal 2019 reflect higher feed costs per pound, continued favorable demand for poultry products from retail grocery store customers and a favorable export environment," Chairman and CEO Joe F. Sanderson Jr. said.

In the first six months of the year, net sales reached $1.59 billion, up from $1.58 billion in the prior-year period. Net income was $22.8 million, or $1.03 per share, compared with net income of $93.2 million, or $4.08 per share, for the comparable period of 2018.

Looking ahead to the second half of the year, the company expects prices paid for grain to be lower than last year. Further, it projects production during the third and fourth quarters to increase 6% and 7.5%.

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Global markets

The main European stock markets traded deep in the green. The U.K.'s FTSE 100 gained 0.46%, France's CAC 40 climbed 0.51%, Germany's Dax inched up 0.54% and Spain's IBEX 35 rose 0.85%.

In Asia, Japan's Nikkei 225 fell 0.29%, India’s BSE Sensex advanced 0.84%, Hong Kong's Hang Seng swelled 0.44% and China's Shanghai Composite closed 0.31% lower.

Disclosure: The author holds no positions in any stocks mentioned.

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