Company Overview - Cal-Maine Foods (NASDAQ: CALM) has recently reported that its facilities in Kansas and Texas are now operational, which is expected to contribute to future growth [1] Financial Performance - The company anticipates free cash flow (FCF) growth due to the recent increase in egg prices and new capacity from recent acquisitions [1]

Core Viewpoint - Investors are seeking opportunities for strong performance in 2024, particularly in dividend stocks that offer attractive yields and potential for growth [1] Group 1: Cal-Maine Foods Inc. (NASDAQ: CALM) - Cal-Maine Foods has seen its stock price decline over 10% from a 52-week high of $114.06, presenting a potential buying opportunity [3] - The stock is forecasted to have a 12-month price target of $67.00, indicating a downside of 34.27% based on analyst ratings [3] - Institutional investors, including State Street, have increased their holdings by 3.0%, bringing their total position to $120.5 million, or 3.2% ownership [4] - The company offers a dividend payout of up to $5.95 per share, translating to a yield of 5.84%, which is competitive against inflation [5] - Cal-Maine's price-to-book (P/B) ratio is 2.8x, lower than the materials sector average of 3.6x, suggesting potential for price appreciation [6] Group 2: United Parcel Service Inc. (NYSE: UPS) - UPS stock is forecasted to reach a 12-month price target of $151.10, representing a 22.46% upside based on analyst ratings [8] - The stock is currently trading at 76% of its 52-week high, making it an attractive investment opportunity [9] - UPS offers a dividend payout of up to $6.52 per share, resulting in an annualized yield of 5.3% [9] - There has been a 4.8% decline in UPS stock's short interest over the past month, indicating a shift in market sentiment towards the stock [10] Group 3: HP Inc. (NYSE: HPQ) - HP stock has a 12-month price forecast of $36.23, with an upside potential of 8.89% based on analyst ratings [11] - The stock's short interest has decreased by 14.9%, reflecting growing market interest in discounted dividend stocks [11] - HP offers a dividend yield of 3.46% and trades at 83% of its 52-week high, providing a cushion against inflation [11] - Analysts at J.P. Morgan Chase have set a valuation of $41.00 per share for HP, indicating a potential upside of 23.1% [12] - State Street has increased its holdings in HP by 8.2%, bringing their total position to $1.9 billion, or 5.4% ownership [13] - HP's price-to-earnings (P/E) ratio is 11.8x, significantly lower than the computer sector's average of 233.9x, suggesting it is undervalued [13]

My articles are written with a mind to owning a stock for years, not trying to predict price movements in a few months. I don't do target prices; I do valuations.I first entered investing in 2020 as an individual value investor, keen to understand the fundamentals of businesses and buy their shares at attractive prices. From May 2022 to May 2023, I worked as an investment advisory representative at Fidelity Investments. I am now self-employed through other ventures.Part of my technique is to write an articl ...

CalMaine Foods, Inc. (CALM) reported earnings per share of $4.47 in second-quarter fiscal 2025 (ended Nov. 30, 2024). This represents a significant improvement from earnings of 35 cents in the year-ago quarter, driven by robust demand and elevated egg prices.Egg prices have been high as supply remains constrained due to the recent outbreaks of highly pathogenic avian influenza (“HPAI”). CalMaine achieved records for total dozens sold and specialty dozens sold in the quarter, with heightened demand leading u ...

Earnings and Revenue Performance - The company reported fiscal second-quarter earnings of $4.47 per share, with revenue up 82.5% year-over-year to $954.7 million, both well above forecasts [1] - The average price of a dozen eggs soared 58.4% to $2.74, and the number of dozen eggs sold climbed 14.5% to 329,844 [1] Factors Driving Growth - Higher egg prices and holiday season demand contributed to the company's better-than-expected results [1][4] - The acquisition of the production assets of ISE America in June also boosted sales [2][4] - Demand for eggs was described as "robust," with a significant increase in dozens sold during the quarter, including the seasonal boost leading up to Thanksgiving [2] Impact of Bird Flu Outbreaks - Egg prices have continued to rise due to restricted supply levels of shell eggs caused by recent outbreaks of highly pathogenic avian influenza (HPAI) [3][4] Stock Performance - Shares of Cal-Maine Foods gained over 2% in intraday trading Wednesday and have nearly doubled in value over the past year [3] - The stock was trading at $106.18 on NASDAQ with a volume of 811.71K [6]

Core Viewpoint - Cal-Maine Foods is positioned as a strong investment opportunity due to its market dominance in the U.S. fresh shell egg industry, stability in a defensive sector, and strategic initiatives for long-term growth, particularly in the cage-free egg market [1][15]. Market Position and Competition - Cal-Maine Foods leads the U.S. fresh shell egg market, facing competition from smaller producers but maintaining an edge through a robust distribution network and strong retailer relationships [2]. - The company's size allows for economies of scale in production and distribution, making it difficult for smaller competitors to match its advantages [2]. Financial Performance - In Q2 FY2025, Cal-Maine Foods reported net sales of $954.7 million, an 82.5% year-over-year increase, and net income of $219.1 million, or $4.47 per diluted share, up from $17.0 million, or $0.35 per diluted share, in the prior year [3]. - The company sold 329.8 million dozens of shell eggs, a 14.4% increase, with the average selling price per dozen rising to $2.740 from $1.730 [3]. Specialty Products and Cost Management - Specialty egg sales accounted for 36.5% of total dozens sold and 31.7% of revenue, with a 12.8% reduction in feed cost per dozen to $0.483 [4]. - The stock experienced a decline of 1.02% on the earnings release day, attributed to a "buy the rumor, sell the news" scenario [4]. Shareholder Returns - Cal-Maine Foods has a variable dividend policy, distributing one-third of quarterly net income as dividends, with a Q2 FY2025 dividend of approximately $1.49 per share [5]. Strategic Investments - The company is investing $40 million to build five new cage-free layer houses, increasing capacity by approximately 1.0 million hens by late summer 2025 [6]. - Cal-Maine acquired a 51% stake in Crepini LLC for $6.75 million, entering the value-added market, and is investing $15 million to expand its Blackshear, Georgia facility for liquid egg products [7]. Growth Opportunities - The demand for cage-free eggs presents a significant growth opportunity, with Cal-Maine's investments in cage-free infrastructure aimed at securing long-term market share [8]. Industry Challenges - The egg industry faces risks from Highly Pathogenic Avian Influenza (HPAI) and volatile feed costs, which can impact production [9][11]. - In 2024, 38.4 million commercial layer hens were depopulated due to HPAI, leading to a 4.5% decrease in the U.S. hen population compared to the five-year average [10]. Stock Outlook - The current analyst consensus rating for Cal-Maine Foods is "Reduce," with an average 12-month price target of $67.00, indicating a potential downside from the current stock price [12][13]. - The stock has seen an 89.22% increase year-over-year prior to the Q2 FY2025 report, with the options market implying a potential 5.0% move in the stock price [14]. Long-Term Perspective - Cal-Maine Foods combines stability in a defensive industry with a growth strategy focused on cage-free products and diversification, positioning itself for long-term success despite potential short-term volatility [15][16].

Financial Performance - For the second quarter of fiscal 2025, the company recorded a gross profit of $356.0 million, significantly up from $91.1 million in the same period of fiscal 2024, driven by increased net average selling prices and total dozens sold[101]. - Total net sales for the second quarter of fiscal 2025 were $954.7 million, an increase of 82.5% compared to $523.2 million for the same period in fiscal 2024[107]. - The company reported a net income attributable to Cal-Maine Foods, Inc. of 23.0% for the second quarter of fiscal 2025, compared to 3.3% in the prior year[106]. - Operating income for Q2 fiscal 2025 was $278.1 million, a significant increase from $14.2 million in Q2 fiscal 2024[134]. - Net income attributable to Cal-Maine Foods, Inc. for Q2 fiscal 2025 was $219.1 million, or $4.49 per share, compared to $17.0 million, or $0.35 per share, in Q2 fiscal 2024[142]. - Cash flows from operating activities for the twenty-six weeks ended November 30, 2024, were $240.2 million, up from $73.7 million in the same period of fiscal 2024[145]. Sales and Pricing - The net average selling price per dozen for the second quarter of fiscal 2025 was $2.740, compared to $1.730 in the prior-year period, with conventional egg prices at $2.943 and specialty egg prices at $2.387[102]. - Shell egg sales accounted for 94.6% of total net sales in the second quarter of fiscal 2025, with conventional egg sales increasing by $336.3 million, or 119.8%[112]. - The average selling price per dozen for conventional eggs rose to $2.943, up from $1.458 in the prior year, reflecting a 101.9% increase[111]. - Specialty egg sales increased by $69.1 million, or 31.7%, in the second quarter of fiscal 2025, attributed to a 25.6% increase in volume sold[112]. - Egg products sales increased by $20.6 million, or 103.1%, in the second quarter of fiscal 2025, driven by a 63.5% increase in liquid eggs sold[116]. Production and Capacity - The company’s dozens sold increased by 14.5% in the second quarter of fiscal 2025 compared to the same quarter in fiscal 2024, supported by robust demand and increased production capacity from recent acquisitions[103]. - The company is focused on expanding cage-free production capacity to meet evolving customer needs and regulatory requirements, with significant capital investments made in recent years[92]. - The company acquired ISE America, Inc. in the first quarter of fiscal 2025, adding approximately 4.7 million laying hens, including 1.0 million cage-free, enhancing market reach in the Northeast and Mid-Atlantic states[93]. - New capital projects added since the end of Q1 2025 include five new cage-free layer houses and two pullet houses, expected to increase production capacity by approximately 1.1 million cage-free layer hens and 250,000 pullets by late summer 2025[152]. - The processing plant and hatchery acquired in Q4 2024 is expected to be operational in the next fiscal quarter, contributing approximately 1.2 million additional free-range hens by fall 2025[153]. Costs and Expenses - Total cost of sales rose by 38.5% to $598.6 million in the second quarter of fiscal 2025, compared to $432.1 million in the same period of fiscal 2024[118]. - Farm production costs per dozen produced decreased by 8.5% to $0.901, primarily due to a 12.8% reduction in feed costs[118]. - The average cost per dozen of outside egg purchases increased by 58.6% in Q2 fiscal 2025 compared to Q2 fiscal 2024, with dozens purchased increasing by 80.3%[123]. - Processing, packaging, and warehouse costs increased by 16.6% in Q2 fiscal 2025 compared to Q2 fiscal 2024, driven by a 9.7% increase in the volume of processed dozens[123]. - The company experienced a 176.4% increase in egg purchases and other cost of sales, totaling $198.0 million in the second quarter of fiscal 2025[118]. Investments and Capital Projects - The company completed a strategic investment in Crepini LLC, contributing approximately $6.75 million for a 51% interest in a new egg products and prepared foods venture[95]. - The company has approved capital projects totaling approximately $311.1 million, with $211.8 million spent as of November 30, 2024, leaving $99.3 million remaining[152]. - The company is investing $15 million to expand its egg products processing facility in Blackshear, Georgia, to add extended shelf-life liquid egg products[152]. - Current cash balances, investments, projected cash flows from operations, and available borrowings are deemed sufficient to fund capital expenditure needs for at least the next 12 months[156]. Market Conditions - In fiscal 2024, 38.4 million commercial layer hens were depopulated due to HPAI, impacting supply and contributing to elevated egg prices[98]. - The daily average price for the Urner Barry southeast large index increased by 102.1% in the second quarter of fiscal 2025 compared to the prior year, reflecting supply constraints due to HPAI outbreaks[102]. - The average CBOT daily market price for corn was $4.17 per bushel and $311 per ton for soybean meal in Q2 fiscal 2025, representing decreases of 13.0% and 25.3% respectively compared to Q2 fiscal 2024[120].

Exhibit 99.1 Contacts: Sherman Miller, President and CEO Max P. Bowman, Vice President and CFO (601) 948-6813 CAL-MAINE FOODS REPORTS RESULTS FOR SECOND QUARTER FISCAL 2025 RIDGELAND, Miss. (January 7, 2025) - Cal-Maine Foods, Inc. (NASDAQ: CALM) ("Cal-Maine Foods" or the "Company"),the largest producer and distributor of freshshell eggs in the UnitedStates, today reported results for the second quarter of fiscal 2025 (thirteen weeks) ended November 30, 2024. Second Quarter Fiscal 2025 Highlights Overview S ...

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CalMaine Foods’ (CALM) shares hit a fresh 52-week high of $99.63 yesterday, before closing the session lower at $96.49.CALM stock has gained 35.3% over the past three months against the industry’s 0.6% dip. It has also outperformed the S&P 500’s rise of 6.1% over the same period. The Basic Materials sector has declined 3.4% in the same time frame.  Image Source: Zacks Investment Research Let us take a look into the factors that are driving CALM stock.CALM Posts Solid 1Q25 Results on Higher Pricing & SalesCa ...