Cal-Maine Foods soars on Q2 profit increase
Cal-Maine Foods, Inc. (Nasdaq: CALM) shares are rising after the egg producer reported a 528% jump in second-quarter profits due to record egg prices during the three-month period.
“These results reflect the favorable market conditions, with egg prices reaching record levels during the quarter,” CEO Fred Adams, Jr. said in a statement. “All of our operations performed well during the period. The egg industry has received positive reports from both the medical and nutritional communities, and eggs continue to represent a good value compared with other food products.”
Cal-Maine earned $40.2 million, or $1.69 per share, up from $6.4 million, or $0.27 per share, during the same period of 2006. The Jackson, Miss.-based company’s quarterly sales climbed 62.5% to $223.7 million, from $137.7 million a year earlier.
Adams said he expects feed costs to remain high with ethanol demand pushing up corn expenses and adding to price pressures.
On the year to date, Cal-Maine’s stock price has more than tripled. In morning trading, CALM shares are up 16.6%, or $4.30 at $30.15. Over the last 52 weeks, shares have ranged from $8.30 to $31.45.
