Cal-Maine Foods (NASDAQ:CALM) posted quarterly results that exceeded profit expectations even as revenue fell sharply, sending the company’s shares higher.
The egg producer reported diluted earnings per share of $2.13, beating the consensus forecast of $2.08. Revenue, however, declined 19.4% year on year to $769.5 million, coming in below market expectations of $814.21 million.
The top-line shortfall was largely driven by a steep fall in shell egg sales, which dropped 28.1% from the same period last year to $649.6 million. Within that total, sales of conventional eggs fell 41% to $363.9 million, while specialty egg sales were broadly stable at $285.7 million, little changed from a year earlier.
Commenting on the results, Sherman Miller, president and chief executive of Cal-Maine Foods, said: “Despite the impact of eggs prices, we believe our performance in the second quarter and first half of the fiscal year demonstrates strength and momentum. We delivered solid results compared to a prior year marked by supply-demand imbalances and historic price levels.”
Looking ahead, Miller added: “We expect the ongoing sales mix shift across our portfolio, visible throughout the first half of the fiscal year, will enhance the durability and predictability of our earnings over time.”