Cal-Maine Foods (CALM) 2021 Q3 Earnings Report Review

The history of Cal-Maine Foods Inc. (NASDAQ:CALM) dates back to 1957 when founder Fred Adams established his chicken farm in Mississippi. One year later, Fred started his first commercial layer operation. 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 Jackson, Mississippi-based company recently announced mixed financial results for the third quarter. It reported earnings of $13.5 million, or 28 cents per share for the three months ended February 27, nearly unchanged from $13.7 million, or 28 cents per share in the comparable period of 2020.

Revenue for the quarter came in at $359.1 million, down 3.9 percent from the year-ago quarter. Analysts on average were expecting Cal-Maine to report earnings of 7 cents per share on revenue of $369.0 million.

The shell egg production in the quarter decreased 3.3 percent on a year-over-year basis. Nevertheless, the average sales price for shell eggs inched up to $1.25 per dozen in the quarter, versus $1.24 per dozen in the year-ago quarter. On the bright side, revenue from specialty eggs increased to $145.2 million in the quarter, as compared to $125 million in the same period last year.

Speaking on the results, CEO Dolph Baker said in a statement, “We are pleased with our results for the third quarter of fiscal 2021, which reflect strong retail demand for shell eggs as consumers have continued to purchase more eggs for preparing meals at home. While we saw modest improvement in the food service and hospitality business as COVID-19-related restrictions have gradually lifted in select parts of the country, this market segment has not returned to pre-pandemic demand levels.”

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