Cal-Maine Foods (CALM 44.31, -3.99, -8.26%) slid 8.6% in pre-market
after reporting weaker than expected results for the first quarter. The early
selling sent the stock beneath its 200-day moving average (46.41) and into the
neighborhood of its low from July (43.50).
The company, which produces roughly 25% of the domestic egg supply, reported below-consensus first quarter earnings of $0.26 per share on a 29.6% year/year jump in revenue to $340.6 mln, which was also shy of expectations.
The company's strong revenue growth rate was achieved due to higher average customer selling prices while sales volumes were consistent with levels from a year ago. However, the company noted that 11% year-to-date growth in the number of chicks hatched will lead to a higher number of laying hens, which could weigh on future prices.
Cal-Maine Foods will pay a first quarter dividend of $0.085 per share, which is down from the last dividend of $0.35. The company employs a variable dividend policy, which calls for a dividend that amounts to one third of its net income.
The company produced 209.21 mln dozens, down 2.0% from 213.57 mln dozens produced one year ago. Unit sales grew 0.2% to 250.06 mln dozens.
Feed costs per dozen increased 10.1% to $0.413 while net average selling price per dozen increased 28.5% to $1.307. The net average selling price of specialty eggs increased 0.6% to $1.890 per dozen. Specialty egg sales made up 23.8% of all dozens sold, up from 21.7% one year ago. In dollar terms, specialty egg sales represented 34.2% of all sales, down from 39.6% of sales one year ago.
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