Cal-Maine Profit Triples on Higher Food Prices

But the egg producer warns that feed prices will continue to increase

   

Cal-Maine Foods (NASDAQ:CALM) announced on Monday that it earned $9.42 million during its fiscal first quarter, more than three times the $3.12 million profit in the same period last year.

EPS for the quarter came in at 39 cents, up from 13 cents in 2011. The egg producer recorded revenue of $272.9 million, up 12% from last year on higher food prices, Fox News noted.

corn on cob 630 200x200 Cal Maine Profit Triples on Higher Food Prices
Popcorn Crops Feel Midwest Drought Squeeze

Gross margins rose from 13.86% last year, to 16.38%. Sales of specialty eggs accounted for 23.5% of total shell eggs and 16% of eggs sold by the dozen. Company officials called the results a “strong start” to the fiscal year during a season that was usually difficult for the company.

Rising feed costs were anticipated to remain a problem as fallout from the prolonged drought in the Midwest lingered.

Shares of Cal-Maine Foods rose fractionally in Monday afternoon trading.

Cal-Maine Foods is part of InvestorPlace’s Real America Index, a list of companies — one from each state — whose performance provides a window on the health of the U.S. economy. Cal-Maine represents the state of Mississippi in the index.


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/cal-maine-profit-triples-on-higher-food-prices/.

©2014 InvestorPlace Media, LLC

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