Cal-Maine 3Q Net Rises 17%, Missing Forecasts

By Earnings FOXBusiness

Cal-Maine (CALM) logged a 17% jump in fiscal third-quarter earnings on Monday, but the egg producer’s profits trailed expectations and management warned of higher feed costs ahead.

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The parent of the Eggland’s Best and Farmhouse brands said it earned $30.6 million, or $1.27 a share, compared with a profit of $26.1 million, or $1.09 a share, a year earlier.

Analysts had been calling for stronger EPS of $1.40.

Revenue jumped 19% to $360.4 million as average selling prices increased and volumes rose thanks to recent acquisitions.

However, Cal-Maine said its gross margins dipped to 18.6% from 21.5% as feed costs soared 22% year-over-year.

“We are pleased with our profitable performance in a challenging environment,” CEO Dolph Baker said in a statement. “Looking ahead, we expect the extremely tight national corn supply will continue to be a concern through the summer months and keep pressure on our feed costs."

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Shares of Jackson, Miss.-based Cal-Maine were inactive in premarket trading Monday morning but have increased 6% so far this year, trailing a 10% gain for the S&P 500.

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