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Feb 29, 2020
Cal-Maine Foods Q3 2020 Earnings Report
Reported a return to profitability driven by strategic execution amidst challenging market conditions.
Key Takeaways
Cal-Maine Foods reported net sales of $345.6 million for the third quarter of fiscal 2020, a 10.0 percent decrease compared to the same quarter last year. Net income for the quarter was $13.7 million, or $0.28 per basic and diluted share, compared to $39.8 million, or $0.82 per share, for the third quarter of fiscal 2019.
Net sales decreased by 10.0 percent to $345.6 million compared to the third quarter of fiscal 2019.
Net income was $13.7 million, or $0.28 per share, compared to $39.8 million, or $0.82 per share, in the prior-year quarter.
Specialty egg sales accounted for 35.0 percent of sales revenue, totaling $117.7 million.
The company is expanding cage-free production with investments of over $344 million since 2008.
Revenue by Segment
Forward Guidance
Looking ahead into the fourth quarter of fiscal 2020 and fiscal 2021, the company believes they are taking all reasonable precautions in the management of their operations in response to the outbreak of COVID-19. To date, Cal-Maine Foods facilities are operating normally, and they have not experienced any supply chain or delivery disruptions.
Positive Outlook
- Facilities are operating normally.
- No supply chain or delivery disruptions experienced to date.
- Supplemental pay provided to all employees.
- Strict sanitation protocols and biosecurity measures are in place.
- Focused on meeting the current high demand for eggs.
Challenges Ahead
- Ongoing uncertainties and supply chain disruptions related to the COVID-19 outbreak.
- Geopolitical issues surrounding trade agreements and international tariffs could create more price volatility in the future.
- Potential for continued price volatility through the end of the fiscal year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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