Cal-Maine Foods Delivers Better-Than-Expected Quarterly Results Despite Avian Flu Impact

Thursday, 4 April 2024, 00:32

Cal-Maine Foods surprises with robust financial performance in Q3 despite revenue decline, stemming from lower egg prices and recent avian flu outbreaks. The company faces disruptions due to the Avian flu outbreak at one of its facilities, necessitating temporary production halts and depopulation efforts. With potential recovery in egg prices looming, investors consider the stock's trajectory amidst current adversity and future prospects.
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Cal-Maine Foods Delivers Better-Than-Expected Quarterly Results Despite Avian Flu Impact

Cal-Maine Foods' better-than-feared quarter

The $703.1 million revenue mark represented a 29.5% YoY decrease, yielding $146.7 million net income at $3 per share. Analysts forecasted earnings of $2.46 per share on $692 million revenue.

Revenue decline: Lower average selling prices drove the 41.5% drop in net average selling price per dozen, despite record quarterly sales volume.

Cal-Maine Foods and the Avian flu outbreak

The Texas facility's avian flu detection led to depopulation of 1.6 million laying hens and 337,000 pullets, impacting 3.6% of the flock as of March 2, 2024.

USDA report: 15.7 million hens and pullets depopulated nationwide due to avian flu outbreaks in the 2023-2024 period.

The stock's rally reflects confidence in bounce-back from current challenges and potential egg price rise.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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