NASDAQ$CALM

Cal-Maine Foods, Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Cal-Maine Foods reported record results for the second quarter of fiscal year 2023, driven by record average conventional egg selling prices and increased demand.

Cal-Maine Foods reported record net sales of $801.7 million and net income of $198.6 million for the second quarter of fiscal 2023. The results were driven by record average selling prices for conventional eggs due to reduced supply related to the outbreak of highly pathogenic avian influenza (HPAI) and good customer demand.

  • Record quarterly net sales of $801.7 million, a 110% increase compared with the same quarter last year.
  • Record quarterly net income of $198.6 million, or $4.08 per basic and $4.07 per diluted common share.
  • Quarterly gross profit margin of 39.6%.
  • Cash dividend of $1.35 per share was announced.

Headline financials

Total Revenue

$802M

Previous: $391M+105.1%
EPS (adj)

$4.07

Previous: $0.02+20250.0%
Capital Expenditures

-$59.7M

Previous: -$28.6M-108.4%
Free Cash Flow

$139M

Previous: -$27.5M+605.5%
Net Income

$199M

Previous: $1.17M+16829.8%
Operating Income

$260M

Previous: -$2.07M+12684.4%
Gross Profit

$318M

Previous: $43.7M+626.6%
Cash & Equivalents

$379M

Previous: $15.5M+2349.9%
Total Assets

$1.76B

Previous: $1.23B+43.1%

Revenue & EPS history

Cal-Maine Foods · Revenue · Quarterly

$802M

Q2 2023+105.1%vs Q2 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Cal-Maine Foods · $228M total across 1 segment · Q2 2023

  • Specialty Eggs
    $228M+46.1%

Forward guidance

The Company expects continued corn and soybean upward pricing pressures and further market volatility to affect feed costs. The Company believes the HPAI outbreak will continue to exert downward pressure on the overall supply of eggs, and the duration of these effects will depend in part on the timing of replenishment of the U.S. layer hen flock.

Tailwinds

  • The USDA reported that the hatch from July 2022 through November 2022 increased 5.8% as compared with the prior-year period.
  • Cal-Maine Foods believes it has been mindful and proactive in implementing and maintaining robust biosecurity programs across all its locations and facilities.
  • The Company is working closely with federal, state and local government officials, and focused industry groups to mitigate the risk of this and future outbreaks, and effectively manage a response, if needed.
  • Cal-Maine Foods’ membership in ProEgg is expected to provide benefits for its customers, including supply chain stability and enhanced reliability.
  • Cal-Maine Foods serves as the preferred provider of specialty and conventional eggs for MeadowCreek to manufacture egg products.

Headwinds

  • For fiscal 2023, the Company expects continued corn and soybean upward pricing pressures and further market volatility to affect feed costs.
  • The Company believes the HPAI outbreak will continue to exert downward pressure on the overall supply of eggs.
  • The duration of these effects will depend in part on the timing of replenishment of the U.S. layer hen flock.
  • Layer hen numbers reported by the USDA as of December 1, 2022, were 308 million, which represents a decrease of 5.8% compared with the layer hen inventory a year ago.
  • Due to delays caused by supply chain issues and plans for expansion, MeadowCreek is expected to begin operations by or before March 2023.

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 2023

Historical avgQ2 2023

-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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