Cal-Maine Foods Posts Higher Profit In Q3 - Update

(RTTNews) - Shell eggs producer Cal-Maine Foods, Inc. (CALM) Monday reported a higher third-quarter profit, as sales grew 10 percent, driven by improved volumes through the holiday season and higher average selling prices. The company also benefited from lower feed costs compared with last year.

Dolph Baker, chairman, president and chief executive officer of the company said, "Consumer demand for shell eggs has been strong at the retail level for both generic and specialty eggs, supported by below average temperatures across the country."

During the period, sales of specialty eggs were up 9.0 percent from last year. Specialty egg sales accounted for 17.4 percent of dozen eggs sold and 23.7 percent of total shell egg sales revenue for the recent quarter, compared with 16.7 percent of dozen eggs sold and 23.6 percent of total shell egg sales revenue for the prior-year quarter.

On March 1, 2014, the company completed acquisition of 50 percent of membership interests of Delta Egg Farm, LLC from Sunbest Foods of Iowa, Inc. Delta Egg Farm, previously an unconsolidated joint venture of the company, is now a wholly owned subsidiary of Cal-Maine Foods.

For the 13-week period ended March 1, 2014, the company's net income increased to $42.58 million or $1.77 per share from $30.55 million or $1.27 per share in the previous year. Analysts polled by Thomson Reuters expected earnings per share of $1.41 for the quarter. Analysts' estimates typically exclude one-time items.

Operating income was $46.6 million, up 51 percent from a year earlier.

Net sales for the quarter grew 10 percent to $395.52 million from $360.37 million a year ago.

Cal-Maine Foods also said it would pay a third-quarter cash dividend of about $0.591 per share to holders of its common and Class A common stock. The dividend is payable May 15, 2014, to shareholders of record on April 30, 2014.

CALM closed Fridays regular trading at $57.51 on the Nasdaq.