Post Earnings Coverage as Cal-Maine Sales Declined 53.6%

Upcoming AWS Coverage on Whitewave Foods

LONDON, UK / ACCESSWIRE / January 5, 2017 / Active Wall St. announces its post-earnings coverage on Cal-Maine Foods, Inc. (NASDAQ: CALM). The Company released its second quarter fiscal 2017 financial results on December 22, 2016. The egg producer’s sales and earnings numbers declined sharply amid challenging market fundamentals in the egg industry. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Cal-Maine Foods’ competitors within the Food – Major Diversified space, The Whitewave Foods Co. (NYSE: WWAV), is estimated to report earnings on February 09, 2017. AWS will be initiating a research report on Whitewave Foods in the coming days.

Today, AWS is promoting its earnings coverage on CALM; touching on WWAV. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=CALM

http://www.activewallst.com/registration-3/?symbol=WWAV

Earnings Reviewed

For the three months ended November 26, 2016, Cal-Maine reported that net sales totaled $253.5 million, a 53.6% decrease compared to net sales of $546.0 million in Q2 FY16. The Company’s sales numbers came in below market estimates of $262.83 million. For the twenty-six weeks ended November 26, 2016, Cal-Maine generated net sales of $493.4 million compared to $1,155.9 million for the prior year’s same period.

For Q2 FY17, Cal-Maine reported a net loss of $23.0 million, or $0.48 per basic and diluted share, compared to net income of $109.2 million, or $2.27 per basic share and $2.26 per diluted share, for Q2 FY16. The Company’s earnings numbers met analysts’ expectations of a loss of $0.48 per share. Cal-Maine reported a net loss of $53.9 million, or $1.12 per basic and diluted share, for the twenty-six weeks ended November 26, 2016, compared to net income of $252.3 million, or $5.24 per basic share and $5.22 per diluted share, for the year-earlier comparable period.

Dolph Baker, Chairman, President, and Chief Executive Officer of Cal-Maine Foods, Inc., stated:

“Our results for the second quarter of fiscal 2017 reflect extremely challenging market fundamentals in the egg industry.”

The Egg Story

During Q2 FY17, Cal-Maine’s specialty eggs, excluding co-pack sales, accounted for 22.4% of its total sales volume, similar to the level reported in Q2 FY16. The Company’s specialty eggs revenue accounted for 45.8% of total revenues compared to 26.1% for Q2 FY16. The Company noted that specialty egg prices have typically been less volatile than conventional eggs, which proved to be the case in the reported quarter, as the average selling price for specialty eggs was down 13.2% over the corresponding year earlier quarter to $2.003 per dozen, while the average selling price for non-specialty eggs was down 64.9% in Q2 FY17 over the prior year’s corresponding period at $0.971 per dozen.

Cal-Maine stated that following the 2015 avian influenza (AI)-related laying hen losses, USDA data demonstrated that the egg industry has repopulated farms with laying hen numbers beginning to approach pre-AI levels. As per the Company, the market demand trends have not kept pace with the higher production levels. While retail customer demand has been steady, egg export demand has not fully recovered following the aftermath of the AI outbreak. Cal-Maine noted that it also experienced reduced demand for egg products, as many commercial customers reformulated their products to use fewer eggs when prices spiked, and have been slow to resume previous egg usage. Together, these factors have created an oversupply of eggs, and prices have declined drastically from the record high levels last year. For Q2 FY17, the Company’s average customer selling prices were down 50.7% from the same period of FY16.

Balance Sheet

As of November 26, 2016, Cal-Maine had cash and cash equivalents worth 197.90 million compared to $389.55 million as of May 28, 2016. The Company’s long term debt was $7.00 million at the end of Q2 FY17.

Stock Performance

At the closing bell, on Wednesday, January 04, 2017, Cal-Maine Foods’ stock slightly climbed 0.69%, ending the trading session at $44.05. A total volume of 434.02 thousand shares were traded at the end of the day. In the last month and previous three months, shares of the company have advanced 11.10% and 15.86%, respectively. The stock is trading at a PE ratio of 219.15 and has a dividend yield of 5.66%.

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