Cal-Maine Foods stock rises thanks to higher egg prices and strong earnings

What you need to know

• Cal-Maine Foods’ shares rose Wednesday after it reported better-than-expected earnings due to higher egg prices, and the holiday season demand.
• The acquisition of ISE America’s production assets also benefited the largest U.S. egg manufacturer.
• Cal-Maine reported that egg prices continued to increase as a result of recent bird flu outbreaks in the U.S.

Cal-Maine Foods’ (CALM), the U.S. largest egg producer, saw its shares rise Wednesday. The company beat sales and profit estimates due to increased prices and holiday demand.

Revenues increased by 82.5% over the previous year. The company posted earnings per share of $4.47 for its fiscal second quarter. Both are well over forecasts at $954.7 millions.

Gains were made as the price per dozen of eggs rose 58.4%, to $2.74. The number of dozen of eggs sold also increased 14.5%, to 329.844.

Sherman Miller, the CEO at Sherman Miller, said the demand for egg was “robust,” In conclusion “a significant increase in dozens sold for the quarter, which included the seasonal boost leading up to the Thanksgiving holiday and sales from our latest acquisition completed in June.” Cal-Maine completed its acquisition of the production assets from ISE America.

Miller pointed out that egg prices have increased due to Bird Flu in the U.S. “have continued to rise this fiscal year as supply levels of shell eggs have been restricted due to recent outbreaks of highly pathogenic avian influenza ('HPAI').”

Cal-Maine Foods shares were trading over 2% higher in intraday trade on Wednesday. They have almost doubled their value in the last year.

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