Cal-Maine (NASDAQ: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.
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.
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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."
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.