Morgan Stanley Comments On Tough 3Q For Sanderson Farms

Morgan Stanley has published a research report on Sanderson Farms SAFM after the company's F3Q11 proved tougher than expected. In the report, Morgan Stanley writes, "Sanderson Farms reported adjusted F3Q11 EPS of -$1.86, compared to our -$0.48 estimate and the consensus -$0.91 estimate (note a wide range of estimates for the quarter: -$0.35 to -$1.50). The -$2.51 of GAAP EPS includes a $0.65 live inventory adjustment charge, which consensus may or may not adjust for (we exclude the charge from the quarter)." Morgan Stanley maintains its Underweight rating on Sanderson Farms, which closed yesterday at $40.34.