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on September 30, 2014

Analysts: Cal-Maine Foods may not be a good investment now

From WattAgNet:

Cal-Maine Foods saw its net income increase more than threefold and its sales increase 12 percent during the first quarter of fiscal year 2015, but some analysts are skeptical that the largest egg producer in the United States can retain that kind of financial strength.

“While the valuation looks appealing based on the current metrics and long-term reported growth, the current operating conditions appear not sustainable as high egg prices and lower feed costs will undoubtedly result in a built-up capacity, thereby hurting future prices,” a Seeking Alpha analyst wrote.

Cal-Maine Foods on September 29 released the financial results of its first quarter ending August 30, citing its net income jumped from $8.8 million for the first quarter of 2014 to $27.7 million. The net income per share was $1.14 per diluted share, three cents below analysts’ expectations.

Dolph Baker, the company’s president and CEO, noted that Cal-Maine Foods is optimistic about its outlook for the remainder of the fiscal year, but also provided words of caution, citing that USDA reports indicate the national layer flock is at a record high level, possibly increasing the future egg supply and putting downward pressure on egg prices.

California’s Proposition 2, which will take effect January 1, 2015, makes it unlawful to house layer hens in battery cages, potentially impacting the U.S. egg industry as a whole.

Cal-Maine Profit Rises on Higher Egg Prices

said its fiscal first-quarter earnings rose sharply, buoyed by strong demand for specialty eggs and higher average selling prices. "Consumer demand for eggs has been very favorable and we experienced continued strong demand from all the major market segments including retail, egg product and exports," Chief.
Read more at The Wall Street Journal

Cal-Maine Foods Inc Posts Higher Q1 Results; Misses EPS Estimates (CALM)

Before the opening bell on Monday morning, Cal-Maine Foods (CALM) reported its first quarter earnings, posting higher revenues and earnings compared to last year's same quarter. CALM's Earnings in Brief Cal-Maine reported first quarter revenues of $356.9 million, a 12% increase over last year's Q1 revenues of $319.5 million.
Read more at The Dividend Daily

Cal-Maine Foods - Nice Business, But Buy On Dips As Current Operating Conditions Are Not Sustainable

By The Value Investor: Investors in Cal-Maine Foods (NASDAQ:CALM) were not impressed with the company's first-quarter results, as shares were trading a percent lower following the earnings report, although the earnings release took place amidst a market sell-off. That being said, the company ...
Read more at Seeking Alpha
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