TSN - Cal-Maine Foods Delivers an Eggs-Citing EPS Beat | Benzinga
Cal-Maine Foods Inc. (NASDAQ: CALM) is the largest and leading producer and distributor of fresh shell eggs in the United States, with a 19% market share. Shareholders are rejoicing over its strong fiscal Q3 2024 earnings report and special $1.00 dividend. The company has staged a solid turnaround despite egg prices falling and the growing concerns over highly pathogenic avian influenza (HPAI).
Demand has remained stronger than ever, as reflected by its blockbuster earnings figures. Despite record volumes, the basic materials sector stock is still in value investing territory, with shares trading at just 11.15X earnings and 13.59X forward earnings. It competes with Post Holdings Inc. (NYSE: POST) as one of the largest food service suppliers of egg products.
Avian Flu Impacts
Concerns over avian flu (h5n1) have been making headlines, with farm livestock and cattle getting infected and even human infections becoming a reality. The USDA reported nearly 15.7 million commercial layer hens and pullets were depopulated (terminated) between November 2023 and January 2024. Cal-Maine experienced an outbreak in its Kansas facility, resulting in 1.5 million laying hens and 240,000 pullets being depopulated.
On April 2, 2024, the company reported positive test results for avian flu at its Parmer County, Texas facility, resulting in depopulating 1.6 million egg-laying hens (adult female chickens) and 337,000 pullets (less than 1 year-old female chickens) or 3.6% of its total flock. Production at the facility has ...