Cal-Maine Swings To FQ1 Profit

Cal-Maine Foods Inc CALM swung to a profit in the fiscal first quarter. CALM reported its FQ1 profit at $4.8 million, or $0.20 per share, as compared to a loss of $3.8 million, or $0.16 per share, in the year-ago period. The company's revenue rose 1.5% y/y to $190.4 million. CALM said that the improvement in the results was due to healthy demand for its specialty eggs along with lower feed costs. The insurance gain worth $2.6 million associated with the 2009 fire at its facilities in Texas also helped the company during the quarter. Fred Adams, Jr, CALM's chairman and chief executive officer said, “We are pleased with our financial and operating results for the first quarter, marking a solid start to fiscal 2011 for Cal-Maine Foods. Our improved sales were primarily driven by increased consumer demand for our value-added specialty eggs, which carry higher retail sales prices. Overall, we experienced a modest improvement in both volume and average selling prices compared with the first quarter of fiscal 2010. Our retail business has remained very steady, while our food service sales have been affected by reduced restaurant traffic, as consumers are not dining out as frequently.” CALM shares gained 0.66% to $30.50 in after-hours trading. Read more from Benzinga's Company news.