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CALM Q3 Earnings & Sales Surge Y/Y on High Egg Prices & Demand
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Cal-Maine Foods, Inc. (CALM - Free Report) reported earnings per share of $10.38 in third-quarter fiscal 2025 (ended March 1, 2025). This represents a significant improvement from earnings of $3.00 in the year-ago quarter, driven by robust demand and elevated egg prices.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Egg prices have been high as supply remains constrained due to the recent outbreaks of highly pathogenic avian influenza (“HPAI”). Cal-Maine achieved records for a total of dozens sold, reflecting high seasonal demand. Also, severe weather led to buyers stocking up on eggs.
Cal-Maine’s Q3 Top Line Surges on Higher Prices & Eggs Sold
Sales in the third quarter of fiscal 2025 were $1.42 billion, skyrocketing 102% year over year due to increased net average selling price of shell eggs and higher total dozens sold.
Net average selling price (per dozen) was $4.06 in the third quarter of fiscal 2025, marking an 80.7% year-over-year surge. The net average selling price per dozen for conventional eggs soared 121.5% to $4.766 and the same for specialty eggs rose 15% to $2.784 per dozen.
Cal-Maine produced 293 million dozen eggs in the quarter compared with around 260 million in the year-ago quarter. The company sold a record 331.4 million dozen shell eggs in the third quarter of fiscal 2025, 10% higher than the year-ago quarter.
Conventional eggs sold were 213.2 million dozen, up 11% year over year. Specialty egg sales increased 9% to 118 million dozen. Specialty egg sales (in dozens) accounted for 35.7% of total sales in the quarter.
CALM Witnesses Solid Upside in Margins
Farm production costs per dozen were down 5.7% year over year, reflecting favorable commodity pricing for key feed ingredients. Feed costs per dozen moved down 9.6% from the third quarter of fiscal 2024. To meet the increased demand in the quarter, Cal-Maine made external egg purchases at higher prices, incurring increased costs.
The total cost of sales rose 45% year over year to $702 million in the third quarter of fiscal 2025.
Gross profit was around $716 million, a 228% upsurge from the year-ago quarter. The gross margin for the quarter under review was 50.5%, a major expansion from the year-ago quarter’s 31.1%.
Selling, general and administrative expenses were around $80 million compared with the year-ago quarter’s $66 million. Cal-Maine reported an operating profit of $636 million in the quarter under review compared with $163 million in the year-ago quarter. The operating margin was 44.8% in the third quarter of fiscal 2025 compared with 23.2% in the third quarter of fiscal 2024.
CALM ended the third quarter of fiscal 2025 with cash and cash equivalents of $1.24 billion compared with $812 at the end of fiscal 2024.
Cal-Maine’s board of directors approved a $500-million share repurchase program. The company declared a cash dividend of $3.46 per share. The dividend will be paid out on May 15, 2025, to shareholders of record as of April 30, 2025.
The company has a variable dividend policy. Whenever it reports quarterly net income, it allocates one-third of that income as a cash dividend to its shareholders.
HPAI Outbreaks to Act as an Obstacle for CALM Stock
Outbreaks of HPAI continue to occur in U.S. poultry flocks. In 2024, 38.4 million commercial laying hens and 1.8 million pullets had to be depopulated. From the start of this year till March, an additional 32.9 million commercial layer hens and pullets have been depopulated. Per the USDA, table-egg layer flock was approximately 285 million as of March 1, 2025 — the lowest level since September 2015.
In the third and fourth quarters of fiscal 2024, Cal-Maine reported HPAI outbreaks within its facilities in Kansas and Texas, which led to the total depopulation of 3.1 million laying hens and 577,000 pullets. Both locations have been cleared by the USDA as fit to resume operations. CALM continues to implement biosecurity programs across its locations.
Cal-Maine’s Expansion Plans, New Products to Fuel Growth
To capitalize on the solid demand, CALM has made investments to expand operations. It has earmarked $60 million in new capital projects for the expansion of cage-free capacity. This included $40 million in projects announced in October, including the addition of five cage-free layer houses and two pullet houses across the company’s locations in Florida, Georgia, Utah and Texas. These are expected to add production capacity for 1.1 million cage-free layer hens and 250,000 pullets in 2025.
Cal-Maine has converted the assets acquired from Tyson Foods, Inc. (TSN - Free Report) in March 2024 for shell egg production. The assets acquired from Tyson were a broiler processing plant, a hatchery and a feed mill in Dexter, MO. These assets are expected to add an additional capacity of 1.2 million free-range hens by the end of the calendar year.
CALM to Acquire Echo Lake Foods
Cal-Maine has entered an agreement to acquire Burlington, WI-based Echo Lake Foods, Inc. for $258 million. Echo Lake Foods produces, packages, markets and distributes ready-to-eat egg products and breakfast foods, including waffles, pancakes, scrambled eggs, frozen cooked omelets, egg patties, toast and diced eggs. The transaction is expected to close by the end of fiscal 2025.
Echo Lake Foods generated $240 million in revenues in 2024. It is expected to be at least mid-single-digit accretive to CALM’s earnings starting in fiscal 2026. With this move, Cal-Maine Foods will enter the large, growing and highly stable value-added food portion of the egg category. This acquisition supplements CALM’s ready-to-eat egg product offerings from its expanded MeadowCreek Foods operation, and its joint venture with Crepini Foods LLC.
CALM Stock Price Performance & Zacks Rank
Cal-Maine shares have gained 44.7% in the past year against the industry’s 19.8% decline.
Bunge Global SA (BG - Free Report) is expected to report first-quarter 2025 results later this month. The company has a trailing four-quarter average earnings surprise of 3.38%. The Zacks Consensus Estimate for Bunge’s earnings is pegged at $1.27 per share, implying a 58% year-over-year decline.
The consensus estimate for Bunge’s top line is pegged at $12.81 billion, indicating a 4.5% decline from the prior-year reported figure.
Hydrofarm (HYFM - Free Report) , anticipated to release first-quarter 2025 results next month, has a trailing four-quarter average earnings surprise of negative 16.70%. The Zacks Consensus Estimate for HYFM’s earnings is pegged at a loss of $2.50 per share. This implies an improvement over the loss of $2.60 reported in the year-ago quarter.
The consensus estimate for Hydrofarm’s revenues is pegged at $50 million, indicating a 7.7% dip from the prior-year reported figure.
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CALM Q3 Earnings & Sales Surge Y/Y on High Egg Prices & Demand
Cal-Maine Foods, Inc. (CALM - Free Report) reported earnings per share of $10.38 in third-quarter fiscal 2025 (ended March 1, 2025). This represents a significant improvement from earnings of $3.00 in the year-ago quarter, driven by robust demand and elevated egg prices.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Egg prices have been high as supply remains constrained due to the recent outbreaks of highly pathogenic avian influenza (“HPAI”). Cal-Maine achieved records for a total of dozens sold, reflecting high seasonal demand. Also, severe weather led to buyers stocking up on eggs.
Cal-Maine’s Q3 Top Line Surges on Higher Prices & Eggs Sold
Sales in the third quarter of fiscal 2025 were $1.42 billion, skyrocketing 102% year over year due to increased net average selling price of shell eggs and higher total dozens sold.
Net average selling price (per dozen) was $4.06 in the third quarter of fiscal 2025, marking an 80.7% year-over-year surge. The net average selling price per dozen for conventional eggs soared 121.5% to $4.766 and the same for specialty eggs rose 15% to $2.784 per dozen.
Cal-Maine produced 293 million dozen eggs in the quarter compared with around 260 million in the year-ago quarter. The company sold a record 331.4 million dozen shell eggs in the third quarter of fiscal 2025, 10% higher than the year-ago quarter.
Conventional eggs sold were 213.2 million dozen, up 11% year over year. Specialty egg sales increased 9% to 118 million dozen. Specialty egg sales (in dozens) accounted for 35.7% of total sales in the quarter.
CALM Witnesses Solid Upside in Margins
Farm production costs per dozen were down 5.7% year over year, reflecting favorable commodity pricing for key feed ingredients. Feed costs per dozen moved down 9.6% from the third quarter of fiscal 2024. To meet the increased demand in the quarter, Cal-Maine made external egg purchases at higher prices, incurring increased costs.
The total cost of sales rose 45% year over year to $702 million in the third quarter of fiscal 2025.
Gross profit was around $716 million, a 228% upsurge from the year-ago quarter. The gross margin for the quarter under review was 50.5%, a major expansion from the year-ago quarter’s 31.1%.
Selling, general and administrative expenses were around $80 million compared with the year-ago quarter’s $66 million. Cal-Maine reported an operating profit of $636 million in the quarter under review compared with $163 million in the year-ago quarter. The operating margin was 44.8% in the third quarter of fiscal 2025 compared with 23.2% in the third quarter of fiscal 2024.
Cal-Maine’s Cash Position, Share Repurchase Announcement
CALM ended the third quarter of fiscal 2025 with cash and cash equivalents of $1.24 billion compared with $812 at the end of fiscal 2024.
Cal-Maine’s board of directors approved a $500-million share repurchase program. The company declared a cash dividend of $3.46 per share. The dividend will be paid out on May 15, 2025, to shareholders of record as of April 30, 2025.
The company has a variable dividend policy. Whenever it reports quarterly net income, it allocates one-third of that income as a cash dividend to its shareholders.
HPAI Outbreaks to Act as an Obstacle for CALM Stock
Outbreaks of HPAI continue to occur in U.S. poultry flocks. In 2024, 38.4 million commercial laying hens and 1.8 million pullets had to be depopulated. From the start of this year till March, an additional 32.9 million commercial layer hens and pullets have been depopulated. Per the USDA, table-egg layer flock was approximately 285 million as of March 1, 2025 — the lowest level since September 2015.
In the third and fourth quarters of fiscal 2024, Cal-Maine reported HPAI outbreaks within its facilities in Kansas and Texas, which led to the total depopulation of 3.1 million laying hens and 577,000 pullets. Both locations have been cleared by the USDA as fit to resume operations. CALM continues to implement biosecurity programs across its locations.
Cal-Maine’s Expansion Plans, New Products to Fuel Growth
To capitalize on the solid demand, CALM has made investments to expand operations. It has earmarked $60 million in new capital projects for the expansion of cage-free capacity. This included $40 million in projects announced in October, including the addition of five cage-free layer houses and two pullet houses across the company’s locations in Florida, Georgia, Utah and Texas. These are expected to add production capacity for 1.1 million cage-free layer hens and 250,000 pullets in 2025.
Cal-Maine has converted the assets acquired from Tyson Foods, Inc. (TSN - Free Report) in March 2024 for shell egg production. The assets acquired from Tyson were a broiler processing plant, a hatchery and a feed mill in Dexter, MO. These assets are expected to add an additional capacity of 1.2 million free-range hens by the end of the calendar year.
CALM to Acquire Echo Lake Foods
Cal-Maine has entered an agreement to acquire Burlington, WI-based Echo Lake Foods, Inc. for $258 million. Echo Lake Foods produces, packages, markets and distributes ready-to-eat egg products and breakfast foods, including waffles, pancakes, scrambled eggs, frozen cooked omelets, egg patties, toast and diced eggs. The transaction is expected to close by the end of fiscal 2025.
Echo Lake Foods generated $240 million in revenues in 2024. It is expected to be at least mid-single-digit accretive to CALM’s earnings starting in fiscal 2026.
With this move, Cal-Maine Foods will enter the large, growing and highly stable value-added food portion of the egg category. This acquisition supplements CALM’s ready-to-eat egg product offerings from its expanded MeadowCreek Foods operation, and its joint venture with Crepini Foods LLC.
CALM Stock Price Performance & Zacks Rank
Cal-Maine shares have gained 44.7% in the past year against the industry’s 19.8% decline.
Image Source: Zacks Investment Research
CALM currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Agriculture Stocks Awaiting Results
Bunge Global SA (BG - Free Report) is expected to report first-quarter 2025 results later this month. The company has a trailing four-quarter average earnings surprise of 3.38%. The Zacks Consensus Estimate for Bunge’s earnings is pegged at $1.27 per share, implying a 58% year-over-year decline.
The consensus estimate for Bunge’s top line is pegged at $12.81 billion, indicating a 4.5% decline from the prior-year reported figure.
Hydrofarm (HYFM - Free Report) , anticipated to release first-quarter 2025 results next month, has a trailing four-quarter average earnings surprise of negative 16.70%. The Zacks Consensus Estimate for HYFM’s earnings is pegged at a loss of $2.50 per share. This implies an improvement over the loss of $2.60 reported in the year-ago quarter.
The consensus estimate for Hydrofarm’s revenues is pegged at $50 million, indicating a 7.7% dip from the prior-year reported figure.