Cal-Maine Foods Inc (NASDAQ:CALM) shares were off more than 6% today before rallying to green territory in morning trading after the shell egg producer reported its latest quarterly results. For its second quarter, the company reported EPS of $2.26 on revenue of $546 million, missing estimates by $0.14 per share and $6.31 million. Cal-Maine Foods Inc (NASDAQ:CALM) results were lower than expected mostly because of weaker egg pricing and higher feed costs. CEO Dolph Baker said:
“Our industry continues to deal with the significant reduction in the national laying hen flock that occurred this past spring related to the Avian Influenza (AI) outbreaks in the upper Midwestern United States. While the supply is gradually starting to move back up, the current national laying hen flock reported by the USDA yesterday is still approximately nine percent lower than it was a year ago. Egg prices have moved lower than expected in spite of the reduced supply, and we expect prices will remain volatile until the industry has more clarity on future supply levels.”
Following the report, the analysts at D.A. Davidson trimmed their price target to $60 from $65 but said they would be buyers on weakness, as they like Cal-Maine’s planned increase in specialty egg production, which should increase prices in the long run.
Adamas Pharmaceuticals Inc (NASDAQ:ADMS) is 2.4% higher in morning trading as momentum from yesterday’s good news pushes the stock forward. On Wednesday, Adamas Pharmaceuticals Inc (NASDAQ:ADMS) announced that its lead product candidate, ADS-5102 (amantadine HCl), had successfully met the primary endpoint in a phase 3 clinical trial concerning its safety and efficacy for the treatment of levodopa-induced dyskinesia in Parkinson’s disease patients. Adamas will present a more comprehensive version of the data gleaned from the trial at an upcoming scientific conference. A total of 15 funds from our database, including Jim Simons’ Renaissance Technologies, owned 12.5% of the company’s float at the end of September.