The Inghams Group Ltd (ASX: ING) share price will be one to watch this reporting season.
Investors will be keen to see how the poultry producer performed in comparison to the company's guidance.
Let's take a look at how the Inghams share price responded last reporting season.
How did the company's shares perform last reporting season?
The Inghams share price bolted out of the gate after releasing its results for FY20 last earnings season.
Investors were quick to bid shares in the poultry producer higher, with the Inghams share price surging more than 7% in early trade.
Shares in the company closed the day around 4% higher as shareholders digested the results.
For FY20 Inghams reported a 68.2% drop in net profit of $40.1 million.
In addition, the company saw a 23.6% fall in underlying profit of $78.8 million for the year.
Inghams cited the COVID-19 pandemic for causing challenges in supply chains and operations within the poultry market.
Despite the drop in profit, poultry volumes increased 3.3% to 429,000 tonnes in FY20.
Irrespective of the drop in net profit, Inghams still declared a final dividend of 6.7 cents per share for FY20.
Inghams share price snapshot
The Inghams share price has performed remarkably well in 2021.
Shares in the poultry producer are up more than 26% since the start of the year, receiving a boost recently after the company released its guidance for FY21.
For the 12 months ending 25 June, Inghams is forecasting statutory earnings before interest, tax, depreciation and amortisation (EBITDA) of between $438 million to $448 million.
In addition, the company expect statutory net profit after tax to be in the range of $80 million to $87 million.
Inghams noted that operational efficiencies and improved trading conditions had resulted in guidance well ahead of the analyst consensus.
This bullish outlook was supported by a note from analysts at Goldman Sachs.
The broker retained a buy rating and lifted their price target on Inghams shares to $4.50.
Despite painting a positive outlook for the company, securities in Inghams are one of the most shorted on the exchange.
Recent data has indicated that the company's share registry has an 8.5% short interest.
Inghams is scheduled to report its earnings for FY21 tomorrow.
