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May 30, 2020
Cal-Maine Foods Q4 2020 Earnings Report
Cal-Maine Foods experienced a significant increase in net sales and reported net income, reversing a net loss from the previous year's quarter, driven by increased demand and higher market prices for eggs due to the COVID-19 pandemic and seasonal Easter demand.
Key Takeaways
Cal-Maine Foods reported a strong fourth quarter for fiscal year 2020, with a substantial increase in net sales and a return to profitability compared to the same quarter last year. The company benefited from increased demand and higher egg prices driven by the COVID-19 pandemic and seasonal factors.
Net sales for the fourth quarter of fiscal 2020 increased by 61.6% to $453.3 million compared to $280.6 million in the fourth quarter of fiscal 2019.
The company reported net income of $60.5 million, or $1.25 per basic share, for the fourth quarter of fiscal 2020, compared to a net loss of $19.8 million, or $(0.41) per share, for the fourth quarter of fiscal 2019.
Sales volumes were up 10.9% compared with the fourth quarter of fiscal 2019, driven by increased demand for eggs for at-home meal preparation.
Operating income was $76.1 million in the fourth quarter, a significant improvement from the operating loss of $30.4 million in the prior-year fourth quarter.
Revenue by Segment
Forward Guidance
Cal-Maine Foods will continue to execute its growth strategy in fiscal 2021, focusing on providing a favorable product mix, investing in operations, identifying acquisition opportunities and managing operations responsibly amidst an uncertain environment.
Positive Outlook
- Provide a favorable product mix, including cage-free and other specialty eggs.
- Invest in our operations.
- Identify acquisition or other growth opportunities that enhance our production.
- Manage our operations in a responsible and sustainable manner.
- Safely meet the needs of our customers and providing outstanding products and service.
Challenges Ahead
- Ongoing uncertainties related to the COVID-19 pandemic.
- Supply chain disruptions.
- Weather fluctuations.
- Geopolitical issues surrounding trade agreements.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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