Cal-Maine Foods beats sales expectations as egg prices jump
Cal-Maine Foods Inc. reported Monday fiscal third-quarter net income that rose to $96.3 million, or $1.99 a share, from $4.1 million, or 9 cents a share, in the same period a year ago, amid a continued increase in egg prices. The egg seller said results included a per-share benefit of 72 cents from recent tax legislation. The FactSet consensus for earnings per share was $1.51. Sales grew 42% to $435.8 million, beating the FactSet consensus of $425.5 million, as dozens of eggs sold rose to 273.2 million from 263.6 million. The net average selling price for a dozen eggs jumped to $1.545 from $1.130, while the net average selling price for a dozen specialty eggs slipped to $1.933 from $1.965. Feed costs per dozen eggs were flat at 39.6 cents. “While production has moderated, the laying hen flock size has moved up modestly compared with prior-year levels, resulting in an improved balance of supply and demand,” said Chief Executive Dolph Baker. “Recent USDA reports, however, show an increase in chicks hatched, which could indicate future increases in supply.” The stock, which was still inactive in premarket trade, has gained 0.5% over the past three months, while the S&P 500 has lost 2.0%.