Cal-Maine Foods (CALM) saw its stock surge 5.06% in pre-market trading after reporting fiscal Q2 earnings of $2.13 per share, surpassing the consensus estimate of $1.94. Despite a 19.4% year-over-year decline in net sales to $769.5 million due to lower egg prices, the company's strategic focus on higher-margin specialty eggs and prepared foods helped cushion the impact.
The company's specialty eggs and prepared foods segments accounted for 46.4% of net sales, up 1,520 basis points from the prior year. CEO Sherman Miller emphasized the resilience of the diversified business model, which is expected to enhance earnings durability over time. Analysts noted that the shift toward premium products and recent acquisitions, such as Echo Lake Foods, are positioning Cal-Maine for sustained growth.
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