Sanderson Farms (NASDAQ: SAFM) has confirmed the release date for its fiscal Q4 2021, which will be tomorrow, December 30, 2021, before the market opens.
What to look for
Earnings: Stockearning’s Estimated EPS for the fourth quarter of 2021 will be around $3.8 per share representing YoY growth of 201.6%. In the third quarter, the company reported an earnings surprise of 9.66% with EPS of $7.38 relative to estimates of $6.73 per share. Historical EPS Performance shows that in the last 12 quarters, the company has beat estimates eight times (66%) and missed four times (33%).
Revenue: The company anticipates revenue of $1.2 billion, representing a YoY increase of 29.6%. In the third quarter, the company reported net sales of $1.353 billion relative to $956.5 million a year ago. For the first nine months of 2021, the company reported net sales of $3.396 billion.
Stock movement: SAFM shares have lost 2.3% since the company released its Q3 2021 earnings. Interestingly, SAFM shares have been DOWN 29 times out of the past 47 quarters. So, the historical price reaction indicates a 61% probability of the share price going DOWN once SAFM reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 3%, while the predicted move on the seventh day is 4%.
What analysts are saying
Barclays analyst Benjamin Theurer raised his price target in Sanderson Farms from $175 to $203 but maintained a "Hold" rating on the share. Theurer’s price target raise reflects the Cargil and Continental Grain’s announced takeover price.
Also, JPMorgan analyst Ken Goldman cut his rating on the stock from "Buy" to "Hold" rating with a price target of $203 after the announcement that Cargil and Continental Grain will purchase the company for $203 per share.
BMO Capital analyst Kenneth Zaslow downgraded Sanderson Farms from "Buy" to "Hold" with a target price of $203 after Cargil and Continental Grain confirmed that it would buy Sanderson Farms for $203 per share.
Stephens analyst Ben Bienvenu downgraded the stock from "Buy" to "Hold" but maintained his price target of $190. While Bienvenu sees a "high likelihood" that the announced acquisition of Sanderson will be consummate and with a price target of $190 to $200 per share as a "reasonable transaction price range," he thinks the risk/risk of putting new capital to work at current share levels is less compelling.
Credit Suisse analyst Robert Moskow restated his Hold rating Sanderson Farms shares with a price target of $180 following reports in the wall Street Journal that the company is considering a possible sale. The analyst sees the new and credible considering “peakish” market price for commodity chicken and the age of the company’s chairman Joe Sanderson. In addition, Moskow said that he believes Sanderson Farms board will require a change-in-control premium of almost 15%, which is common in the sector representing a bid of almost $190 per share.
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