Cal-Maine Foods Q2 profit beats estimates as prepared foods segment grows

Overview

• Egg producer's fiscal Q2 revenue fell 19.4%, missing analyst expectations

• EPS for fiscal Q2 beat analyst expectations

• Company acquired Clean Egg, LLC to expand specialty egg capacity

Outlook

• Cal-Maine expects sales mix shift to enhance earnings durability over time

• Company anticipates sustained double-digit volume growth in prepared foods

• Cal-Maine sees consumer demand shifting towards specialty and premium protein solutions

Result Drivers

• SALES DIVERSIFICATION - Co focused on diversifying sales and shifting product mix to strengthen earnings durability

• PREPARED FOODS GROWTH - Prepared foods sales rose significantly, driven by recent investments and acquisitions

• SPECIALTY EGGS - Specialty eggs maintained strong sales, accounting for a larger portion of shell egg sales

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", 3 "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 $97.00, about 22.7% above its January 6 closing price of $79.08

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX2FnhH0

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