Cal-Maine Foods Inc. CALM, -0.79% reported a fiscal second-quarter profit that beat expectations but sales that missed, as “less favorable market conditions” led to less eggs sold and at lower prices. The stock was still inactive in premarket trade.
The egg producer swung to net earnings of $21.8 million, or 45 cents a share, for the quarter to Dec. 1, from a loss of $26.1 million, or 54 cents a share, in the same period a year ago. Excluding non-recurring items, such as charges for legal settlements, adjusted earnings per share came to 49 cents, above the FactSet consensus of 48 cents. Sales fell to $356.0 million from $361.2 million, while the FactSet consensus was for a rise to $362.9 million. Dozen eggs sold declined to 262.3 million from 263.1 million, the net average selling price per dozen slipped to $1.311 from $1.321 and feed cost per dozen rose to 41.5 cents from 38.8 cents.
“Per capita egg consumption is up near historical levels, but supply concerns appear to be affecting market prices,” said Chief Executive Dolph Baker.
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