NASDAQ$CALM

Cal-Maine Foods, Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported a net loss due to challenging market conditions and lower average selling prices.

Cal-Maine Foods reported a decrease in net sales and a net loss for the second quarter of fiscal year 2020, primarily due to challenging market conditions and lower average selling prices. While sales volumes remained relatively flat, the company experienced a decline in average selling prices and lost a portion of non-specialty egg sales to a major customer. However, the specialty egg business remains a key component of their growth strategy.

  • Net sales decreased by 12.5% compared to the second quarter of fiscal 2019.
  • The company reported a net loss of $10.1 million, or $0.21 per basic and diluted share.
  • Specialty eggs accounted for 36.0% of sales revenue, with sales of $109.4 million.
  • The company completed the acquisition of certain assets of Mahard Egg Farm.

Headline financials

Total Revenue

$312M

Previous: $356M-12.5%
EPS

-$0.21

Previous: $0.49-142.9%
Capital Expenditures

-$68.1M

Previous: -$19M-259.0%
Free Cash Flow

-$78.2M

Previous: $2.84M-2857.2%
Net Income

-$10.1M

Previous: $21.8M-146.1%
Operating Income

-$16.6M

Previous: $25.3M-165.4%
Gross Profit

$29.4M

Previous: $70.5M-58.4%
Cash & Equivalents

$11.2M

Previous: $46.2M-75.7%
Total Assets

$1.11B

Previous: $1.16B-4.5%

Revenue & EPS history

Cal-Maine Foods · Revenue · Quarterly

$312M

Q2 2020-12.5%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Cal-Maine Foods · $445M total across 2 segments · Q1 2024

  • Conventional Eggs
    $226M-50.6%
  • Specialty Eggs
    $219M+9.2%

Forward guidance

Cal-Maine Foods is focused on long-term management, growth strategy execution, and investments to support operations and serve customers, despite market price volatility and external factors.

Tailwinds

  • Positioning as an industry leader in meeting future customer requirements for cage-free eggs.
  • Preparing for additional demand created by legislation in California, Washington and Oregon requiring cage-free eggs.
  • Investing over $314 million to expand cage-free production.
  • Making progress with expansion plans in Florida, Texas and Utah, which will provide significant additional processing, pullet and cage-free capacity upon completion.
  • Continuing to pursue strategy to grow business through selective acquisitions as well as focused expansion and conversion of existing farms.

Headwinds

  • Ongoing uncertainties and geopolitical issues surrounding trade agreements and international tariffs could create more price volatility for the second half of the year.
  • Experienced challenging market conditions for the second quarter of fiscal 2020.
  • Financial results reflect lower average selling prices compared with the same period of fiscal 2019.
  • Lost a portion of sales of non-specialty eggs to a major customer in the Southeast region, representing 4.6 percent of total shell egg dozens and 6.1 percent of non-specialty egg dozens for fiscal 2019.
  • Hen numbers continue to contribute to the oversupply of eggs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.7%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.0%

Avg return

30 days after

42%

27 / 65 earnings

Positive

+11.0%

Q3 2014

Best reaction

-16.6%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.1%-0.3%
Q2 2026-1.6%-6.6%+4.4%
Q1 2026-1.1%-1.4%-6.7%
Q4 2025+0.8%+3.9%+5.9%
Q3 2025+2.5%+9.3%+1.0%
Q2 2025-0.0%-2.7%+3.8%
Q1 2025+0.8%+13.0%+17.3%
Q4 2024+3.7%+9.8%+11.7%
Q3 2024+4.3%+7.4%-1.8%
Q2 2024-0.7%-2.5%+0.5%
Q1 2024-7.3%-3.2%+4.6%
Q4 2023+0.5%+2.4%+4.1%
Q3 2023+4.9%+10.2%-12.9%
Q2 2023-16.6%-14.6%-13.7%
Q1 2023+1.1%-6.9%-6.0%
Q4 2022+0.3%+1.5%+5.3%
Q3 2022+3.0%+14.5%+7.7%
Q2 2022-1.8%+0.2%+5.1%
Q1 2022+0.3%-2.4%+1.0%
Q4 2021-2.7%-3.0%-1.5%
Q3 2021-3.5%-4.1%-7.9%
Q2 2021+3.1%+2.1%+4.2%
Q1 2021-1.0%-1.4%-0.1%
Q4 2020-0.5%-0.4%-6.7%
Q3 2020+3.7%-4.5%+1.5%
Q2 2020-10.2%-9.9%-13.6%
Q1 2020-13.9%-16.4%-11.5%
Q4 2019+0.3%-0.8%+5.6%
Q3 2019-5.9%-5.8%-7.5%
Q2 2019-1.3%-0.6%+1.4%
Q1 2019-9.6%-8.1%+0.8%
Q4 2018-2.1%-2.1%+8.6%
Q3 2018+5.1%+6.9%+7.1%
Q2 2018-0.3%-0.1%-6.1%
Q1 2018+5.8%+3.0%+6.6%
Q4 2017-0.1%+3.4%-6.1%
Q3 2017+0.5%-1.5%+3.6%
Q2 2017+5.3%+6.4%+1.9%
Q1 2017-3.2%-8.6%-11.3%
Q4 2016-5.4%-8.1%-2.1%
Q3 2016+6.5%
Q2 2016+1.5%
Q1 2016-9.9%
Q4 2015-0.7%
Q3 2015-0.1%
Q2 2015-3.3%
Q1 2015+4.5%
Q4 2014-4.2%
Q3 2014+11.0%
Q2 2014-0.0%
Q1 2014-1.1%
Q4 2013+1.0%
Q3 2013+0.1%
Q2 2013-6.0%
Q1 2013+2.7%
Q2 2012-0.2%
Q4 2011-0.2%
Q4 2010-0.2%
Q4 2012+3.4%
Q3 2012-0.2%
Q3 2011-0.2%
Q2 2011+1.0%
Q1 2011-2.1%
Q1 2012-2.1%
Q3 2010-3.8%

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