Canaccord Genuity Morning Coffee on Cal-Maine Foods (CALM): Eggcellent!
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Price: $80.55 -0.79%
Rating Summary:
2 Buy, 7 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 24
Rating Summary:
2 Buy, 7 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 24
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Canaccord Genuity Morning Coffee on Cal-Maine Foods (Nasdaq: CALM): Eggcellent!
Canaccord analyst says, "Cal-Maine Foods was on the rise as investors scrambled to pick up shares after the egg producer reported fiscal third quarter earnings that beat analyst expectations and the company raised its quarterly dividend. For the quarter ending February 26, the largest egg seller and distributor in the U.S. reported earnings of $1.40 per share on revenue of $274.7 million, down from $1.45 the prior year, but ahead of the average analyst estimate of $1.10 on $230.3 million. While shell egg prices dropped, the company was able to offset the decline with increased sales of its specialty eggs, which typically have a higher selling price. The company stated that specialty eggs now represent nearly 24% of total revenue and account for 18% of units sold. Higher grain costs were a headwind for the company, pushing feed costs up by 5.7%, a trend which CEO Dolph Baker expects to persist for the balance of the year and beyond. Cal-Maine also more than doubled its quarterly dividend, moving it from $0.212 per share in Q2 to $0.47 in Q3. One analyst says that while shares may appear undervalued based on price multiples, lower egg prices combined with rising input costs have made it difficult to see any near-term catalyst for the stock on the horizon."
Canaccord analyst says, "Cal-Maine Foods was on the rise as investors scrambled to pick up shares after the egg producer reported fiscal third quarter earnings that beat analyst expectations and the company raised its quarterly dividend. For the quarter ending February 26, the largest egg seller and distributor in the U.S. reported earnings of $1.40 per share on revenue of $274.7 million, down from $1.45 the prior year, but ahead of the average analyst estimate of $1.10 on $230.3 million. While shell egg prices dropped, the company was able to offset the decline with increased sales of its specialty eggs, which typically have a higher selling price. The company stated that specialty eggs now represent nearly 24% of total revenue and account for 18% of units sold. Higher grain costs were a headwind for the company, pushing feed costs up by 5.7%, a trend which CEO Dolph Baker expects to persist for the balance of the year and beyond. Cal-Maine also more than doubled its quarterly dividend, moving it from $0.212 per share in Q2 to $0.47 in Q3. One analyst says that while shares may appear undervalued based on price multiples, lower egg prices combined with rising input costs have made it difficult to see any near-term catalyst for the stock on the horizon."
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