Cal-Maine Foods Posts Downbeat Q3 Earnings, But Sales Top Estimates

reported weaker-than-expected earnings for the third quarter, but the company's sales exceeded analysts' estimates. The Jackson, Mississippi-based company reported a quarterly profit of $50.9 million, or $1.05 per share, versus a year-ago profit of $42.9 million, or $0.89 per share. Its sales gained 11% to $437.6 million. However, analysts were projecting earnings of $1.10 per share on revenue of $410.70 million. During the quarter, the company sold 283 million dozen eggs, a 5.2% rise year-over-year. The average selling price per dozen eggs increased 6.1%, while feed cost per dozen eggs slipped 5%. Volumes for specialty eggs climbed 22% in the quarter. For the third quarter, Cal-Maine Foods will pay a dividend of $0.350 per share in cash. Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., said, "Cal-Maine Foods delivered a very solid performance for the third quarter of fiscal 2015 with our net sales up 10.6 percent over the same period last year. The higher sales reflect improved volumes through the holiday season with total dozen shell eggs sold up 5.2 percent over the same period last year. While the national hen flock has reached record levels, the strong demand for shell eggs from the three major market sectors - retail, egg products and exports - was enough to absorb the market's increased supply." The average estimate of 3 users surveyed by Estimize was for earnings of $1.10 per share and revenue of $419.31 million. Cal-Maine shares fell 0.20% to $39.00 in pre-market trading.