Why Cal-Maine Foods Shares Are Trading Higher Today

Cal-Maine Foods CALM shares are trading higher on Wednesday after the company reported better-than-expected Q3 results.

Cal-Maine Foods reported quarterly earnings of $6.62 per share which beat the analyst consensus estimate of $4.78. The company also reported quarterly sales of $997.49 million which beat the analyst consensus estimate of $888.21 million.

Table Egg Supply Outlook: The company has stated that it expects the highly pathogenic avian influenza(HPAI) outbreak to continue impacting the overall supply of eggs, and the extent of this impact will depend on when the U.S. layer hen flock is replenished. As of March 1, 2023, the USDA has reported that there are 312.9 million layer hens, which is a decrease of 3.8% compared to last year's inventory. However, there has been a 4.5% increase in hatch from October 2022 through February 2023, suggesting that there may be an increase in layer flocks in the future.

Sherman Miller, president and CEO of Cal-Maine Foods, Inc. stated, "Our results are reflective of a dynamic market environment with higher average selling prices and favorable demand. Elevated market pricing continues, primarily due to the impact of the ongoing epidemic of HPAI, which has significantly reduced the nation's egg-laying capacity. At the same time, consumer demand for shell eggs remained robust in the third quarter, which included the peak winter holiday season.”

Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing, marketing and distribution of fresh shell eggs, including conventional, cage-free, organic, brown, free-range, pasture-raised and nutritionally enhanced eggs.

CALM Price Action:Cal-Maine Foods has a 52-week high of $54.19 and a 52-week low of $43.96.

Cal-Maine Foods shares are up 8.46% at $58.86 at the time of writing, according to Benzinga Pro.