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Cal-Maine Foods: Revenue and Income Rose in Fiscal 2Q16

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Nov. 20 2020, Updated 3:56 p.m. ET

Price movement of Cal-Maine Foods

On December 23, 2015, Cal-Maine Foods (CALM) reported its fiscal 2Q16 earnings for the quarter ended November 28, 2015. After the report, CALM stock rose by 1.7% to close at $49.59 per share on December 23.

Cal-Maine Foods has a market cap of $2.4 billion. In calendar 2015, its YTD (year-to-date) price movements were a mix of rises and falls. Its price movements on a weekly, monthly, and YTD basis were 3.0%, -13.2%, and 31.9%, respectively.

Technically, the stock has broken the support and is trading below all moving day averages in 2015. Currently, CALM is trading 0.77% below its 20-day moving average, 7.9% below its 50-day moving average, and 1.7% below its 200-day moving average.

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The PowerShares Dynamic Food & Beverage Portfolio ETF (PBJ) invests 2.3% of its holdings in Cal-Maine Foods. This ETF tracks a multifactor, tiered equal-weighted index of US food industry stocks. The YTD price movement of PBJ is 7.9% as of December 22, 2015. The PowerShares DWA Consumer Staples Momentum Portfolio ETF (PSL) invests 1.4% of its holdings in Cal-Maine Foods.

The competitors of Cal-Maine Foods (CALM) and their market caps are:

  • Tyson Foods (TSN): $19.7 billion
  • Pilgrim’s Pride Corporation (PPC): $5.8 billion
  • Industrias Bachoco S.A.B. de C.V.-ADR (IBA): $2.5 billion
  • Sanderson Farms (SAFM): $1.8 billion

Performance of Cal-Maine Foods in fiscal 2Q16

Cal-Maine Foods (CALM) reported fiscal 2Q16 net sales of $546.0 million, a rise of 44.2% compared to its net sales of $378.6 million in fiscal 2Q15. A dozen eggs produced and sold rose by 0.26% and 1.5%, respectively, in fiscal 2Q16 as compared to the prior year’s period. The company’s gross profit margin rose by 58.3% in fiscal 2Q16 as compared to its gross profit margin in fiscal 2Q15.

The company’s net income and EPS (earnings per share) rose to $109.2 million and $2.26, respectively, in fiscal 2Q16, as compared to its net income and EPS of $36.6 million and $0.76, respectively, in fiscal 2Q15.

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Meanwhile, the cash and short-term investments, and inventories rose by 18.1% and 6.4%, respectively, in fiscal 2Q16 on a quarterly basis. The company’s current ratio rose to 3.0, and its debt-to-equity ratio fell to 0.36 in fiscal 2Q16 as compared to a current ratio and a debt-to-equity ratio of 2.8 and 0.41, respectively, in fiscal 1Q16.

Cal-Maine Foods has declared a cash dividend of ~$0.751 per share on its common and Class A common stock.

CEO’s comment

According to Dolph Baker, Cal-Maine Foods’ chairman, president, and CEO, “The impressive growth is primarily due to higher average selling prices and a modest increase in volumes compared with the same periods a year ago. While egg prices were still at much higher than normal levels at the beginning of our second quarter, they dropped considerably in October before moving back up due to higher demand related to the Thanksgiving holiday.”

Baker added, “We are pleased with the progress to date at our joint venture with Rose Acre Farms in Texas. This joint venture has allowed us to share the costs and risks associated with bringing more cage-free production to the market and remain competitive.”

Please visit Market Realist’s Consumer Products page for an in-depth fundamental analysis of the sector.

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