Diamonds and Dogs
Chicken for the holidays. Sanderson Farms (SAFM), the nation's third-largest poultry processor, is trading up 5% following earnings. Earnings actually missed estimates as sales fell 13.3% to $798 million. The disappointing results were due in part to two hurricanes during the fourth quarter that affected operations in North Carolina and Georgia. Investors and management are looking forward to a better 2019.
Conagra (CAG) is taking it on the chin. The food packaging company is down 14% following earnings. Conagra actually beat earnings by 11 cents as revenue rose 9.7% to $2.38 billion. Net sales increased due in part to the acquisition of Pinnacle Foods for $10.9 billion in cash and stock. Excluding the acquisition, Conagra's Healthy Choice frozen dinners and other products saw slower growth.