by Christopher Freeburn | July 30, 2012 12:32 pm
Cal-Maine Foods (NASDAQ:CALM) said on Monday that it earned $37.3 million during its fiscal fourth quarter, more than five times the $7.3 million in the same period last year. That profit spike was driven by a $27 million gain from its joint venture with Land O’ Lakes.
The egg supply company’s sales jumped 14% during the quarter to $275.2 million. Adjusted EPS was 44 cents.
Investors liked the results. Shares of Cal-Maine rose more than 2% in Monday trading.
The company reported 2012 full-year earnings of $89.7 million, up 48% from $60.8 million last year. EPS for the year was $3.75.
Revenue for the year topped $1 billion for the first time, hitting $1.11 billion, up from $942 million in fiscal 2011.
Company officials noted that feed costs had increased 7.3% over last year during the final quarter and would likely increase in coming quarters due to a predicted weak U.S. corn harvest, the Associated Press noted.
Cal-Maine acquired Pilgrim’s Pride’s commercial egg business in July. CEO Dolph Baker indicated that the egg producer and distributor was seeking other acquisitions as part of its growth strategy.
Source URL: http://investorplace.com/2012/07/cal-maine-q4-profits-spike-on-joint-venture-gain/
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