Cal-Maine Foods Stock Is Getting Fried Today: What's Going On?

Cal-Maine Foods Inc CALM shares are trading lower Thursday after the company reported mixed financial results for its fiscal second quarter. The company also provided an update on the avian flu outbreak in the U.S.

What Happened: Cal-Maine Foods said fiscal second-quarter revenue increased 110% year-over-year to $801.7 million, which beat average analyst estimates of $797.8 million, according to Benzinga Pro.

The shell egg producer reported second-quarter earnings of $4.07 per share, which missed average analyst estimates of $4.24 per share. 

"These results reflect the current market environment characterized by record average selling prices for conventional eggs, primarily due to reduced supply related to the outbreak in the U.S. of highly pathogenic avian influenza ("HPAI"), and good customer demand," said Sherman Miller, CEO of Cal-Maine Foods.

"Our ability to meet changing demand trends with a favorable product mix has been an important differentiator for Cal-Maine Foods."

Cal-Maine said it's closely monitoring the current avian flu outbreak that was first detected in commercial flocks in the U.S. in February. The company believes the outbreak will continue to "exert downward pressure" on the overall supply of eggs.

Cal-Maine Foods also declared a dividend of approximately $1.35 per share for the second quarter, payable on Feb. 9, 2023, to holders on record as of Jan. 25, 2023.

See Also: Looking Into Cal-Maine Foods's Return On Invested Capital

CALM Price Action: Cal-Maine has a 52-week high of $65.32 and a 52-week low of $35.10.

Cal-Maine shares are down 11.2% at $55.17 Thursday morning, according to Benzinga Pro.

Photo: Olya Lolé from Pixabay.

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