Cal-Maine Foods(US:CALM) Benzinga·2026-01-07 13:39Core Insights - Cal-Maine Foods, Inc. reported a second-quarter earnings per share of $2.13, surpassing the analyst consensus estimate of $1.94, despite a significant decline in revenue and profitability year over year [1] - Quarterly sales amounted to $769.50 million, reflecting a 19.4% decrease compared to the previous year, and fell short of the expected $826.395 million [1] Financial Performance - Shell egg sales were reported at $649.6 million, down 28.1%, while prepared foods sales surged to $71.7 million from $10.4 million, marking an increase of 586.4% [2] - Gross profit decreased to $207.4 million, down 41.8%, with a gross profit margin of 27.0%, primarily due to a 26.5% drop in shell egg selling prices and a 2.2% decline in shell egg sales volume [3] - Operating income fell to $123.9 million, down 55.5%, resulting in an operating income margin of 16.1%, indicating a sharp decline in both profit and operating leverage compared to the prior period [3] Strategic Outlook - The company aims to transition from a commodity-focused egg business to a higher-value, more stable earnings platform, driven by increasing demand for specialty eggs, premium offerings, hybrid pricing, and prepared foods, while maintaining its core shell-egg business as the foundation [6] - The company ended the quarter with $1.14 billion in cash and short-term investments, indicating a strong liquidity position [4] Shareholder Returns - Cal-Maine Foods announced a cash dividend of approximately 72 cents per share, payable on February 12, as part of its variable dividend policy [5] - During the quarter, the company repurchased 846,037 shares of its common stock for $74.8 million, under a $500 million buyback authorization, with $375.2 million remaining for future repurchases [5]