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CalMaine Foods, Inc. (CALM - Free Report) reported earnings per share of 35 cents in second-quarter fiscal 2024 (ended Dec 2, 2023). The bottom line marked a roughly 91% slump from the prior-year quarter.
Sales plunged 34.7% year over year to $523.2 million in the second quarter of fiscal 2024. The company reported exceptionally strong second-quarter fiscal 2023 sales of $802 million. The downside was driven by the substantial drop in the net average selling price of conventional eggs.
However, sales volumes improved 1.4% year over year to 288.2 million total dozens sold in the quarter under review.
The net average selling price per dozen for conventional eggs in the second quarter of fiscal 2024 was down 49.4% year over year to $1.458 despite a sequential improvement in egg prices. In the second quarter of fiscal 2024, specialty dozens accounted for 33.2% of the total dozens sold, down from 33.8% in the second quarter of fiscal 2023. In the quarter, cage-free eggs were responsible for 30.4% of shell egg revenues.
Cal-Maine Foods, Inc. Price, Consensus and EPS Surprise
The cost of sales was down 10.7% year over year to $432 million in the second quarter of fiscal 2024. Gross profit came in at $91 million, down 71.3% from the prior-year quarter. The gross margin for the quarter under review was 17.4%, a major contraction from the prior-year quarter’s 39.6%.
Selling, general and administrative expenses were $76.6 million compared with the prior-year quarter’s $57.9 million. CalMaine reported an operating profit of $14.2 million in second-quarter fiscal 2024 compared with $260 million in the second quarter of fiscal 2023.
The decline was primarily driven by lower market prices, partially offset by lower feed ingredient prices. CalMaine continued to incur higher input costs at its production, processing and distribution centers. Additional bio-security measures to mitigate the risks of HPAI also led to higher costs.
Financial Position
CalMaine reported cash and cash equivalents of roughly $568 million at the end of second-quarter fiscal 2024 compared with $648 at the end of fiscal 2023.
The company announced that it would pay a cash dividend of 0.116 cents per share to holders of its common and Class A common stock. The dividend will be paid out on Feb 15, 2024, to holders of record as of Jan 31, 2024. CalMaine has a variable dividend policy. In the quarter in which the company reports net income, it pays a cash dividend to shareholders, which is an amount equal to one-third of such quarterly income.
Price Performance
CALM shares have gained 9.7% in the past year compared with the industry’s 11.8% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
CalMaine currently flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the basic materials space are Universal Stainless & Alloy Products, Inc. (USAP - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Axalta Coating Systems Ltd. (AXTA - Free Report) . USAP and CRS sport a Zacks Rank #1, and AXTA carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 52 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP shares rallied 151.5% last year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. The company has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 76.8% in a year.
The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at $1.58 per share, suggesting year-over-year growth of 6.8%. The consensus estimate for 2023 earnings has moved 8.2% north in the past 60 days. AXTA shares have gained 23.3% in a year.
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CalMaine (CALM) Q2 Earnings & Sales Tumble Y/Y on Low Prices
CalMaine Foods, Inc. (CALM - Free Report) reported earnings per share of 35 cents in second-quarter fiscal 2024 (ended Dec 2, 2023). The bottom line marked a roughly 91% slump from the prior-year quarter.
Sales plunged 34.7% year over year to $523.2 million in the second quarter of fiscal 2024. The company reported exceptionally strong second-quarter fiscal 2023 sales of $802 million. The downside was driven by the substantial drop in the net average selling price of conventional eggs.
However, sales volumes improved 1.4% year over year to 288.2 million total dozens sold in the quarter under review.
The net average selling price per dozen for conventional eggs in the second quarter of fiscal 2024 was down 49.4% year over year to $1.458 despite a sequential improvement in egg prices. In the second quarter of fiscal 2024, specialty dozens accounted for 33.2% of the total dozens sold, down from 33.8% in the second quarter of fiscal 2023. In the quarter, cage-free eggs were responsible for 30.4% of shell egg revenues.
Cal-Maine Foods, Inc. Price, Consensus and EPS Surprise
Cal-Maine Foods, Inc. price-consensus-eps-surprise-chart | Cal-Maine Foods, Inc. Quote
Operational Update
The cost of sales was down 10.7% year over year to $432 million in the second quarter of fiscal 2024. Gross profit came in at $91 million, down 71.3% from the prior-year quarter. The gross margin for the quarter under review was 17.4%, a major contraction from the prior-year quarter’s 39.6%.
Selling, general and administrative expenses were $76.6 million compared with the prior-year quarter’s $57.9 million. CalMaine reported an operating profit of $14.2 million in second-quarter fiscal 2024 compared with $260 million in the second quarter of fiscal 2023.
The decline was primarily driven by lower market prices, partially offset by lower feed ingredient prices. CalMaine continued to incur higher input costs at its production, processing and distribution centers. Additional bio-security measures to mitigate the risks of HPAI also led to higher costs.
Financial Position
CalMaine reported cash and cash equivalents of roughly $568 million at the end of second-quarter fiscal 2024 compared with $648 at the end of fiscal 2023.
The company announced that it would pay a cash dividend of 0.116 cents per share to holders of its common and Class A common stock. The dividend will be paid out on Feb 15, 2024, to holders of record as of Jan 31, 2024. CalMaine has a variable dividend policy. In the quarter in which the company reports net income, it pays a cash dividend to shareholders, which is an amount equal to one-third of such quarterly income.
Price Performance
CALM shares have gained 9.7% in the past year compared with the industry’s 11.8% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
CalMaine currently flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the basic materials space are Universal Stainless & Alloy Products, Inc. (USAP - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Axalta Coating Systems Ltd. (AXTA - Free Report) . USAP and CRS sport a Zacks Rank #1, and AXTA carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 52 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP shares rallied 151.5% last year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. The company has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 76.8% in a year.
The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at $1.58 per share, suggesting year-over-year growth of 6.8%. The consensus estimate for 2023 earnings has moved 8.2% north in the past 60 days. AXTA shares have gained 23.3% in a year.