Cal-Maine Foods Inc (NASDAQ: CALM) stock slightly rises on decent results

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Cal-Maine Foods Inc (NASDAQ: CALM) stock rose over 1.1% on 31st March, 2020 (as of 11:25 am GMT-4; Source: Google finance) after the company posted better than expected results for the third quarter of FY 20. The company will not pay a dividend with respect to the third quarter of fiscal 2020. At the end of the third quarter of fiscal 2020, the amount of cumulative losses to be recovered before payment of a dividend was $61.9 million. The Company has reported net income of $13.7 million for the third quarter of fiscal 2020, compared to net income of $39.8 million for the third quarter of fiscal 2019.

Moreover, while the company’s sales volumes were in line with last year, there is overall decline in the sales revenue due to the lower average selling prices compared with the same period of fiscal 2019. The Southeast large market average price for conventional eggs declined by 13.8 percent for the third quarter of fiscal 2020 compared to the third quarter of fiscal 2019, while the average sales price was down 10 percent. Since the end of the third quarter, the market prices have moved significantly higher, and the company anticipate to see continued price volatility through the end of the fiscal year.

For the third quarter, specialty eggs, excluding co-pack sales, were $117.7 million, which accounts for 35 percent of the sales revenue, compared to $131.1 million, or 35 percent of sales revenue, in the third quarter of fiscal 2019. Average pricing for specialty eggs has declined by 3.4 percent to $1.89 per dozen in the third quarter compared to the prior-year third quarter. Specialty dozens sold has also fallen by 7.1 percent, as sales of specialty dozens were negatively affected by low conventional egg prices.

CALM in the third quarter of FY 20 has reported the adjusted earnings per share of 28 cents, beating the analysts’ estimates for the adjusted earnings per share of 18 cents. The company had reported 10 percent fall in the adjusted revenue to $345.6 million in the third quarter of FY 20, beating the analysts’ estimates for revenue of $338.1 million.

Additionally, the company’s s facilities are operating normally, and the company has not experienced any supply chain or delivery disruptions due to outbreak of COVID-19.

On the other hand, the company’s Founder and Chairman Emeritus, Fred R. Adams, Jr., died on Sunday, March 29, 2020, at the age of 88, after an extended illness.

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