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


  • 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%

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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.

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