Cal-Maine Q4 revenue beats estimates

Overview

• Cal-Maine Q4 revenue of $1.1 bln beats analyst expectations, per LSEG data

• Net income for Q4 rises to $342.5 mln, driven by higher egg prices

• Co acquires Echo Lake Foods in the qtr

Outlook

• Cal-Maine Foods plans to expand product mix with Echo Lake Foods acquisition

• Company aims to grow shell egg production capacity through strategic acquisitions

• Cal-Maine Foods expects to leverage distribution channels for prepared foods growth

Result Drivers

• EGG PRICE INCREASE - Higher egg prices due to avian influenza outbreaks drove revenue growth

• SPECIALTY EGGS DEMAND - Record sales of specialty eggs due to strong consumer demand and acquisitions

• PRODUCTION EXPANSION - Increased production capacity through acquisitions and organic growth initiatives

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the fishing & farming peer group is "buy."

• Wall Street's median 12-month price target for Cal-Maine Foods Inc is $108.00, about 1.7% above its July 21 closing price of $106.17

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw5BtkZja