Cal-Maine Foods reports Q1 EPS 2c, consensus 33c

Reports Q1 revenue $459.3M, two estimates $479.5M. CEO Sherman Miller stated, “Our results for the first quarter of fiscal 2024 reflect the current dynamic market conditions. After reaching record high levels in fiscal 2023, average selling prices for shell eggs have since returned to more normalized levels as the overall egg supply recovers from the most recent highly pathogenic avian influenza outbreak, which depleted the national hen supply. Customer demand has been favorable with conventional egg volumes higher than a year ago, offset by lower sales of specialty eggs. We continue to focus on offering customers a wide range of quality choices in shell eggs, as well as egg products offerings, with a favorable product mix in line with changing consumer demand trends. Our operations ran well during the quarter, and we benefitted from lower feed costs, although we generally continued to incur higher input costs. Our team has continued to focus on managing our operations in an efficient and sustainable manner. While there have been no recent outbreaks of HPAI in commercial egg laying flocks, we remain diligent in following strict protocols and continue to invest in additional resources to reduce future risk. We commend the work of our managers and employees who responsibly managed our production and continued to bring more quality eggs to the market to support our valued customers. We also have a number of expansion projects underway to increase our production capacity, and we look forward to the opportunities to expand our market reach. In addition to our organic growth initiatives, we have continued to expand our business through selective acquisitions. Following the end of the first quarter, we announced a definitive agreement to acquire substantially all the assets of Fassio Egg Farms, Inc., related to its commercial shell egg production, and processing business, located in Erda, Utah, outside of Salt Lake City. The assets to be acquired include facilities with a current capacity of approximately 1.2 million laying hens, primarily cage-free, a feed mill, pullets, a fertilizer production and composting operation and land. We expect to close this transaction during the second fiscal quarter. We are excited about the opportunity to expand our market presence in Utah and the western United States.”