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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.

Popcorn Crops Feel Midwest Drought Squeeze
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/.

©2016 InvestorPlace Media, LLC

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