Cal-Maine Foods swings to £47.86 million of net income in Q4

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Jul 20, 2020
  • Cal-Maine Foods swings to £47.86 million (98 pence per share) of net income in Q4.
  • The company's sales jump from £221.97 million last year to £358.59 million in Q4.
  • Speciality egg sales made up 29.9% of Cal-Maine Foods total egg sales in Q4.

Cal-Maine Foods (NASDAQ: CALM) published its quarterly financial results on Monday that highlighted the company to have returned to profit in the fiscal fourth quarter. Cal-Maine donated 300,000 eggs to Alabama food banks last week.

Shares of the company are currently more than 2% down on Monday. At £34.26 per share, Cal-Maine Foods is roughly 3% up year to date in the stock market after recovering from a low of £24.48 per share in March. Learn more about how do people make money on the stock market.

Cal-Maine reports £358.59 million of total quarterly sales

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The company reported £47.86 million of net income in Q4 that translates to 98 pence per share. In the same quarter last year, Cal-Maine had recorded £15.66 million of loss or 32.43 pence per share.

In terms of sales, the country’s largest egg producer boasted to have jumped from £221.97 million in the comparable quarter of last year to £358.59 million in the recent quarter.

Analysts had expected the company to print £359.14 million in sales and 95 pence of earnings per share. CEO Dolph Baker commented on the company’s earnings report on Monday and said:

“After three fiscal quarters characterised by an oversupply of eggs and depressed market prices, demand for eggs increased, and market prices rose 62.4% during our fourth fiscal quarter over the average price for the first three quarter, as consumers purchased more eggs for preparing meals at home in response to the COVID-19 pandemic.”

Speciality egg sales make up 29.9% of total egg sales

According to USDA, hen numbers saw a massive decline of 13.9 million in the fourth quarter to 319.8 million. Speciality egg sales made up 29.9% (£105.45 million) of the revenue that Cal-Maine generated from total egg sales in Q4 versus £94.85 million or 44.1% of total egg sales revenue in the comparable quarter of last year.

The company also announced to have suspended its dividend on Monday to shore up finances amidst COVID-19. CEO Baker also said on Monday:

“Current supplies of corn and soybeans are favourable, and we believe we will continue to have an adequate supply of both grains in fiscal 2021. However, current ongoing uncertainties and supply chain disruptions related to the COVID-19 outbreak, weather fluctuations and geopolitical issues surrounding trade agreements and international tariffs may lead to further price volatility.”

At the time of writing, the Jackson-based fresh egg producer is valued at £1.68 billion.

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