CALM - Why Cal-Maine Foods Stock Popped Today
2024-04-03 20:32:00 ET
Shares of Cal-Maine Foods (NASDAQ: CALM) climbed as high as 7.2% early Wednesday, then settled to close up 3.6% after the egg producer announced better-than-expected quarterly results. This occurred despite news of a new Avian flu outbreak at one of its facilities.
For its fiscal third quarter ended March 2, 2024, Cal-Maine Foods' revenue declined 29.5% year over year to $703.1 million, translating to net income of $146.7 million, or $3 per share (down from $6.62 per share in the same year-ago period). Analysts, on average, were only modeling earnings of $2.46 per share on revenue closer to $692 million.
Delving deeper into its results, the company's revenue decline was driven entirely by lower average selling prices. In last year's fiscal Q3, shell egg prices stood at record highs, due to a combination of supply chain challenges and the impact of multiple avian flu outbreaks across the country. The net average selling price per dozen was $2.152 during the quarter, down 41.5% from the same year-ago period, but overall sales and earnings were bolstered by record quarterly sales volume in terms of total dozens sold.
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Why Cal-Maine Foods Stock Popped Today