Cal-Maine Foods reports a lower than expected loss for the 1st quarter.


Cal-Maine Foods reports a lower than expected 1st quarter loss.
CEO Baker says retail demand has been resilient in recent months.
The Board decided not to pay a quarterly dividend.

Cal-Maine Foods Inc. (NASDAQ: CALM) released its first quarter earnings report on Monday, highlighting that the company ended the first quarter with a lower than expected loss. Its sales in the last quarter also exceeded Wall Street estimates.

The company’s shares rose nearly 4% in pre-trade trading on Monday. Cal-Maine Foods is now changing hands at 30.20 pounds per share, up from the previous year’s low of 24 pounds per share in March due to the coronavirus pandemic. Trading stocks online is easier than you think. Find out how you can buy shares online in 2020.

Cal-Maines Q1 financial results compared to analyst estimates

Cal-Maine stated that its net loss for the first quarter was £15.04 million, or 31 pence per share. For the comparable quarter of 2019, the company had reported a much larger loss of £35.51 million or 72.88 pence per share. In the previous quarter (Q4) Cal-Maine had reported a net profit of 47.86 million pounds sterling.

In terms of revenue, the Jackson-based company reported £227 million in the first quarter compared to £187 million in the previous year. According to FactSet, experts had predicted that the company would generate revenues of £220.20 million in the quarter ended August 29. Their estimate of loss per share was capped at 41 pence.

CEO Dolph Baker commented on Monday’s financial report and said

“Our results for the first quarter of fiscal 2021 reflect the ongoing difficult market conditions as we proactively monitor and manage our business in light of the COVID 19 pandemic”.

CEO Baker says retail demand has been resilient in recent months

The CEO added that retail demand has been resilient in recent months as the health crisis continues to drive people to eat at home. In the first quarter, Cal-Maine reported annualized growth of 3.8% on dozens of eggs sold. The company admitted, however, that demand from the catering industry is still significantly weaker than before the virus. But now signs of recovery were beginning to show, Baker said:

“Market prices for eggs remained volatile in the first quarter and decreased overall compared to prices at the end of fiscal 2020, reflecting increased consumer purchases due to the COVId 19 pandemic and seasonal demand due to Easter falling in the fourth quarter.

The company’s Board of Management decided not to pay a quarterly dividend. At the time of writing, the American fresh egg producer has a market capitalization of £1.47 billion and a price-earnings ratio of 102.87.


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