Cal-Maine (CALM) Reports Disappointing Q4 Results

Cal-Maine Foods Inc. (NASDAQ:CALM) traces its roots back to 1957 when founder Fred Adams established his chicken farm in Mississippi. One year later, Fred started his first commercial layer operation. Subsequently, he named his enterprise Cal-Maine, which went public in 1996. Over the years, Cal-Maine grew through acquisitions to become America’s biggest producer of fresh eggs.

The company recently announced disappointing financial results for the fourth quarter amid weak demand for eggs. Cal-Maine reported a loss of 9 cents per share for the three months ended May 29, compared to earnings of $1.24 per share in the comparable period of 2020. Analysts, on average, were looking for earnings of 18 cents per share.

Revenue fell nearly 23 percent to $349.8 million, missing the consensus forecast of $391.2 million. Total dozens of eggs sold declined 9.4 percent on a year-over-year basis to 255.85 million. In addition, the average selling price per dozen also dropped 16.3 percent to $1.318.

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Commenting on the quarter, CEO Dolph Baker said, “Our results for the fourth quarter of fiscal 2021 reflect a significant drop in average selling prices and lower volumes for conventional eggs compared with the same period last year. The fourth quarter of 2020 was a period of very high consumer demand, with market prices reaching record levels as more meals were being prepared at home during the early restrictive phase of the COVID-19 pandemic. Our average sales price for shell eggs was $1.32 per dozen for the fourth quarter this fiscal year compared with $1.58 per dozen for the same period last year. For fiscal 2021, our average sales price for shell eggs was $1.22 per dozen, down slightly from $1.23 per dozen for fiscal 2020.”