Cal-Maine Foods Stock Sinks After Company Posts Weak Q2 Results, Company Provides HPAI Outlook: The Details

Cal-Maine Foods Inc CALM shares are trading lower in Wednesday's after-hours session on the heels of the company's second-quarter earnings.

What To Know: Cal-Maine Foods reported quarterly earnings of 65 cents per share, missing the analyst consensus estimate of 83 cents, a 91.4% decrease over earnings of $4.07 per share from the same period last year.

The company reported quarterly sales of $523.20 million which failed to meet the Steet's estimate of $525.39 million. The figure represents a 34.74% decrease in sales of $801.70 million the same period last year.

Net sales were $523.2 million compared with $801.7 million for the same period last year, with the decline in sales revenue mainly attributed to the large decrease in the net average selling price for conventional eggs.

While conventional egg prices improved sequentially, the net average selling price per dozen was $1.458 for conventional eggs during the quarter, down 49.4% compared with $2.883 for the same quarter last year.

Cal-Maine Foods addressed the HPAI outbreak within its facilities in Kansas, which made news in December, and how it would impact the company going forward.

It expressed confidence in its ability to reduce the loss of production through flock rotations, as well as its biosecurity programs throughout its locations.

However, the company stated it believed the overall supply of eggs would continue to be affected by the outbreak until the layer hen flock is fully replenished.

Sherman Miller, president and CEO of Cal-Maine Food, stated, "Cal-Maine Foods delivered a solid financial and operating performance for the second quarter of fiscal 2024 in the face of dynamic market conditions.

"Our sales reflect a different market environment from a year ago, with significantly lower average selling prices. However, our total volumes sold were up slightly over a year ago, as consumer demand for shell eggs continued to be favorable in the quarter, especially leading up to the Thanksgiving holiday."

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CALM Price Action: Shares of Cal-Maine Foods were down 8.49% at $50.20 in the after-hours session at the time of publication, according to Benzinga Pro.

Photo: Erika Varga from Pixabay