Cal-Maine Foods Reports Better-Than-Expected Q3 Results

Cal-Maine Foods, Inc. (NASDAQ:CALM) reported its fourth-quarter financial results after the bell Tuesday. Here's a look at the highlights. 

The Details: Cal-Maine Foods reported quarterly earnings of $3.00 per share which beat the analyst consensus estimate of $2.46 by 21.95%.

Quarterly sales clocked in at $703.08 million which beat the analyst consensus estimate of $692.35 million by 1.55% and represents a 29.52% decrease over sales of $997.49 million from the same period last year.

The company also reported that one of its facilities in Palmer County, Texas, tested positive for highly pathogenic avian influenza (HPAI), resulting in depopulation of approximately 1.6 million laying hens and 337,000 pullets, or approximately 3.6% of its total flock as of March 2.

Production at the facility has temporarily ceased as the company follows the protocols prescribed by the USDA.

Cal-Maine Foods said it is working to secure production from other facilities to minimize disruption to its customers.

“We are very pleased with Cal-Maine Foods’ strong financial and operating performance for the third quarter of fiscal 2024. Our sales reflect lower average selling prices compared to a year ago, when the shell egg industry experienced record high market prices due primarily to the impact of highly pathogenic avian influenza (HPAI) and other market factors resulting in a significant reduction in supply,” commented Sherman Miller, CEO of Cal-Maine Foods.

“While the more recent outbreaks of HPAI have also affected supply and caused market prices to move higher, the overall market impact has not been as severe. Fueled by strong demand, our total sales volumes (dozens sold) for the quarter were higher than the third quarter of fiscal 2023 and reached a Company record,” added Miller.

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CALM Price Action: According to Benzinga Pro, Cal-Maine Foods shares are up 6.04% after-hours at $62.47 at the time of publication Tuesday.

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