CALM - Cal-Maine Foods gains after strong egg prices leads to earnings topper

2023-03-28 16:15:09 ET

Cal-Maine Foods ( NASDAQ: CALM ) rallied in postmarket trading on Tuesday after the company sailed past consensus estimates with its FQ3 earnings report. The Mississippi-based company posted revenue of $998M and EPS of $6.652.

Conventional egg volumes sold decreased 2.7% compared with a year ago, while specialty egg volumes sold increased by 9.4%. Conventional egg net average selling price per dozen jumped 153% year-over-year to $3.678 from $1.458, while specialty eggs rose 36% to $2.616 per dozen from $1.923 per dozen in the prior year quarter. Specialty dozens sold were 35.7% of total dozens sold compared with 33.1% in the prior-year period.

CEO Sherman Miller said elevated market pricing continues, primarily due to the impact of the ongoing epidemic of highly pathogenic avian influenza, which has significantly reduced the nation’s egg-laying capacity. Consumer demand for shell eggs was also noted to remain robust in the quarter, which included the peak winter holiday season.

Shares of Cal-Maine Foods ( CALM ) rose 3.10% in postmarket action on Tuesday.

The Seeking Alpha Quant Rating on Cal-Maine Foods is still flashing Strong Buy.

Read more about recent trends with egg prices.

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