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Understanding Cal-Maine Foods’ Performance in Fiscal 2Q17

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Price movement

Cal-Maine Foods (CALM) has a market cap of $1.9 billion. It fell 1.6% to close at $42.00 per share on December 22, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 1.8%, 5.1%, and -7.1%, respectively. CALM is trading 2.6% above its 20-day moving average, 6.4% above its 50-day moving average, and 4.3% below its 200-day moving average.

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Related ETF and peers

The Vanguard Small-Cap ETF (VB) invests 0.04% of its holdings in Cal-Maine Foods. The YTD price movement for VB was 18.3% on December 22.

The market caps of Cal-Maine Foods’ competitors are as follows.

  • Pilgrim’s Pride Corporation (PPC): $4.7 billion
  • Industrias Bachoco S.A.B. de C.V.-ADR (IBA): $2.4 billion

Performance of Cal-Maine Foods in fiscal 2Q17

Cal-Maine Foods reported fiscal 2Q17 net sales of $253.5 million, a fall of 53.6% compared to net sales of $546.0 million in fiscal 2Q16, due to weak demand for eggs. Dozens of eggs sold fell 4.5% and dozens of eggs produced rose 3.7% in fiscal 2Q17 compared to 2Q16. The company’s gross profit margin narrowed by 3,730 basis points in fiscal 2Q17 compared to fiscal 2Q16.

Its net income and EPS (earnings per share) fell to -$23.0 million and -$0.48, respectively, in fiscal 2Q17 compared to $109.2 million and $2.26, respectively, in fiscal 2Q16.

CALM’s cash and short-term investments fell 49.2%, and its inventories rose 4.8% between fiscal 2Q17 and fiscal 4Q16.

In the next and final part of this series, we’ll look at Conagra Brands (CAG).

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