Cal-Maine Foods (CALM) Sees Over 70% Surge in Quarterly Sales Driven by Higher Egg Prices and

Core Insights - Cal-Maine Foods, the largest egg producer in the U.S., reported a significant increase in quarterly sales, driven by rising egg prices and reduced production costs [1][2] - The company achieved sales of $786 million in the first quarter of fiscal 2025, up from $489 million a year ago, exceeding expectations of $705 million [2] - The ongoing avian flu outbreak has reduced the U.S. egg supply, contributing to inflation, with the net average selling price for a dozen eggs rising to $2.392 from $1.589 [3] Financial Performance - Cal-Maine Foods reported a net income of $150 million, or $3.06 per share, compared to $9.26 million, or $0.02 per share, in the same quarter last year [4] - The company's stock price has increased approximately 34% year-to-date, outperforming the S&P 500 index's gain of around 20% [4] Market Conditions - The rise in egg prices has become a significant factor in inflation, influenced by the avian flu outbreak [3] - A decline in production costs, mainly due to lower feed ingredient prices, has positively impacted the company's financial performance [3] Operational Resilience - Despite the severe impact of Hurricane Helen on the southeastern U.S., the company stated that it is unlikely to significantly affect its operations and business [4]