Cal-Maine Foods Q2 FY2024: Revenue Drops 34.7%, Misses Analyst Expectations

Summary

  • Cal-Maine Foods, a significant player in the egg industry, reported Q2 FY2024 results aligned with analysts’ forecasts.
  • The company’s revenue fell 34.7% YoY to $523.2 million, attributing to a lower turnover per share than the previous year.
  • However, despite an unfavorable market environment marked by avian influenza outbreaks, Cal-Maine has managed to maintain a strong balance sheet.

The egg giant Cal-Maine Foods (NASDAQ:) Q2 FY2024 performance met the predictions of market analysts despite a drop in revenue by 34.7% to $523.2 million, compared to the same time the previous year. Its GAAP profit was $0.35 per share, a decline from the $4.07 per share profit made in the same period last year.

Primary Points from Cal-Maine’s Q2 Results

These results didn’t yield many positives. Though Cal-Maine’s sales volume improved, the average selling price for a dozen regular eggs slumped from $2.88 to $1.46, a significant 49% YoY decrease. This major setback led the company to miss analysts’ estimates for gross margin, operating margin, and EPS.

A wave of highly pathogenic avian influenza (HPAI) hit the egg industry in November 2023, which also impacted Cal-Maine forcing a depletion of about 1.5 million laying hens – 3.3% of their total flock. This event will lower the egg supply in the US till the flock is restored, causing a probable surge in egg prices. Despite these challenges, Cal-Maine is in a healthy financial state to endure the storm. Hence, this was a fairly mixed quarter for Cal-Maine with its shares currently valued at $51.77 after a 5.7% decrease due to the results.

Considering investing in Cal-Maine? Explore the original piece on StockStory for more insights.

Q2 FY2024 Highlights of Cal-Maine (CALM)

  • Market Capitalization: $2.78 billion
  • Revenue: $523.2 million vs predicted $525.4 million (minor miss)
  • EPS: $0.35 vs expected $0.83 (-$0.48 miss)
  • Gross Margin (GAAP): 17.4%, fell from previous year’s 39.6%

…[the rest of the rewritten content where you normally write your text]…

Given this financial outcome, the potential impact on trading, particularly on the assets connected to packaged food stocks and consumer staples,should be carefully examined and accounted for in investment strategies.

PIP Penguin
Logo