Analyst drops 3 major poultry processor earnings forecasts
Shares of three major poultry processors recently
shifted after a J.P. Morgan equity analyst cut first quarter and full year
Pablo Zuanic recently cited higher grain costs and lower chicken prices in
lowering his earnings expectations for Pilgrim's Pride, Sanderson Farms and
The analyst expects Pilgrim's Pride to report earnings of 12 cents per
share in the first quarter (ended Dec 2007), and 18 cents for the full year
(ending Sept). From his earlier expectation of $3.02 per share, the full year
projection is a 94% drop.
Zuanic projects that Sanderson Farms will post a loss of 12 cents per share
for the first fiscal quarter ending in January. This compares with earlier
expectations of earnings of 41 cents per share. For the full year (ending Oct),
he expects the company to earn 87 cents per share, down from $2.97 predicted
Zuanic lowered his projection for the first quarter for Tyson Foods (ended
Dec 2007), to nil from 4 cents per share, and his forecast for the full fiscal
year (ending Sept) to 13 cents from 50 cents per share earlier.
trading in all three companies' stocks jumped in early trading on Wednesday and
share prices initially fell, but ended the day higher.
Sanderson Farms gained $3.55, closing at $33.59 on the Nasdaq. Pilgrim's
Pride closed $2.44 higher at $26.15 and Tyson ended the day with a 13-cent gain
at $13.58 on the New York Stock Exchange.
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