Cal-Maine Foods tops Wall Street estimates in the fiscal second quarter

Written by: Wajeeh Khan
January 5, 2021
  • Cal-Maine Foods tops Wall Street estimates in the second quarter.
  • The egg producer forecasts £272.56 million of revenue in fiscal Q3.
  • Cal-Maine saw a decline of over 10% in the stock market last year.

Cal-Maine Foods Inc. (NASDAQ: CALM) published its financial results for the fiscal second quarter on Tuesday that topped analysts’ estimates for earnings and revenue despite the ongoing Coronavirus pandemic that has so far infected more than 21 million people in the United States and caused over 350 thousand deaths.

Cal-Maine Foods jumped roughly 6% in after-hours trading on Tuesday. The stock now has a per-share price of £29 versus £22.72 per share in March 2020, when the COVID-19 crisis disrupted its business and weighed on demand.

Cal-Maine’s Q2 financial results versus analysts’ estimates

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Cal-Maine said that its net income in the second quarter came in at £8.95 million that translates to 18.35 pence per share. In the comparable quarter of last year, the egg producer had reported a loss instead.

In separate news from the United States, Newark-based Smart Global Holdings Inc. also recorded estimates-beating per-share earnings for the fiscal first quarter on Tuesday.

In terms of sales, the American company posted £254.92 million in Q2. According to Refinitive, experts had forecast a lower £244.79 million of sales for Cal-Maine Foods in the recent quarter. They had also expected the company to register 5.87 pence of loss per share in the second quarter.

At 273.7 million, total dozens sold came in 4.8% higher on an annualised basis in Q2 – the highest for Cal-Maine’s second quarter in history. The ratio of total dozens that the company produced to the total dozens that it sold stood at 92.1% in the recent quarter – the highest for any quarter in history.

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Cal-Maine’s guidance for the fiscal third quarter

For the fiscal third quarter, the Jackson-based company now anticipates £272.56 million of revenue. Its estimate for per-share earnings in Q3 is capped at 19.82 pence per share. In the prior quarter (Q1), Cal-Maine had noted a narrower than expected loss, as per the report published in the last week of September.

The U.S. company also highlighted on Tuesday that egg prices saw a steady increase at the start of the second quarter. In the second half of Q2, it added, the prices levelled off.

Cal-Maine Foods Inc. performed fairly downbeat in the stock market last year with an annual decline of more than 10%. At the time of writing, the American fresh egg producer is valued at £1.34 billion and has a price to earnings ratio of 40.97.