Cal-Maine Foods Stock Surges On Q2 Earnings Beat Amid Egg Supply Crunch: Retail Sentiment Brightens

Shares of Cal-Maine Foods Inc. ($CALM) were up 5.5% in pre-market trading on Wednesday following the company’s better-than-expected second-quarter fiscal 2025 financial results amid egg supply issues, lifting retail sentiment.

Cal-Maine Foods posted earnings per share of  $4.47, beating Wall Street estimates of $4.05. Its revenues came in at $954.7 million, beating estimates of $751.49 million, according to Stocktwits data.  

The higher sales were primarily driven by an increase in the net average selling price of shell eggs as well as an increase in total dozens sold, the company said.

The company attributed the growth to growing demand, with its “significant scale” and recent acquisitions helping it with the production capacity in a challenging supply environment. Supply levels of eggs have been hit by recent outbreaks of the avian flu (HPAI.)

“Cal-Maine Foods delivered a very strong financial and operating performance in the second quarter of fiscal 2025. Robust demand for shell eggs resulted in a significant increase in dozens sold for the quarter, which included the seasonal boost leading up to the Thanksgiving holiday and sales from our latest acquisition completed in June,” Sherman Miller, president and CEO, said in a statement.  

Retail sentiment on Stocktwits was ‘extremely bullish’ compared to ‘bearish’ a week ago. Message volumes were in the ‘extremely high’ zone compared to ‘high.’

CALM sentiment meter and message volumes on Jan 8 as of 8:10 am ET

For the second quarter, the company will pay a cash dividend of about $1.49 per share to holders of its common stock and Class A common stock.

Stephens analyst Pooran Sharma raised the price target on Cal-Maine Foods to $97 from $88 with an ‘Equal Weight’ rating following the Q2 earnings beat, The Fly.com reported.

According to the analyst, while the firm typically expects a seasonal pullback in egg demand after Christmas, the "extremely tight" supply dynamic is likely to bring "another strong quarter" for the company, the report added.

The company said it is planning to make additional strategic investments to expand operations.

It has chalked about $60 million in new capital projects directed to the expansion of its cage-free capacity, including the $40 million in projects it announced in October, Miller said.

The company said the projects are expected to provide additional production capacity for approximately 1.1 million cage-free layer hens and 250,000 pullets by late summer 2025.

It also investing $15 million to expand its egg products processing facility in Blackshear, 
Georgia.

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