Categories Consumer, Earnings

Earnings preview: Costs to hurt Cal-Maine Foods in Q1

Cal-Maine Foods Inc. (NASDAQ: CALM) is set to report its first-quarter earnings results on Monday, September 30, before the market opens. The results will be impacted by the geopolitical issues around trade agreements and international tariffs as well as unfavorable supply and demand balance.

The results will also be hurt by egg supply growth trends as well as higher costs and expenses. The egg producer will continue to invest in its operations and identify acquisition or other growth opportunities that enhance its production. Also, the company is expected to not pay a dividend for the first quarter until it achieves profitability on a cumulative basis.

For many years, Cal-Maine Foods have pursued a growth strategy focused on the acquisition of existing shell egg production and processing facilities, as well as the construction of new and more efficient facilities. The company continues to upgrade, modify, and invest its facilities to meet the changing demand of cage-free eggs over the next several years.

Earnings preview: Costs to hurt Cal-Maine Foods in Q1
Image for representation. Courtesy: Erol Ahmed on Unsplash

Analysts expect the company to report a loss of $0.89 per share on revenue of $254.52 million for the first quarter. In comparison, during the previous year quarter, Cal-Maine Foods posted a profit of $0.26 per share on revenue of $340.58 million. The company has surprised investors by beating analysts’ expectations twice in the past four quarters.

For the fourth quarter, Cal-Maine Foods slipped to a loss from a profit last year, due to more challenging market conditions. The unfavorable supply and demand balance and anticipated future egg supply growth trends have continued to affect market prices and the company’s business. Net sales decreased by 37% year-over-year.

Looking ahead, the egg producer expects its feed costs to be more volatile and potentially higher in fiscal 2020. The grain prices are expected to be hurt by reduced exports due to the ongoing uncertainties and geopolitical issues surrounding trade agreements and international tariffs.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top