Cal-Maine Foods Inc (CALM)

Cal-Maine’s Q1 results disappointed relative to both HJR and consensus; relative to HJR, feed costs came in materially lower than our estimate, but were more than offset by lower-than-expected price realization. We had attempted to…

Given the ferocity of Hurricane Helene’s winds and its drenching rains, damage to the broiler industry that is concentrated in the Southeast is to be expected. The industry is no stranger to hurricane damage as…

Due to higher-than-expected egg prices, we have raised our Q1 estimate to $3.19 from $2.70 (cons $2.83) and our full-yr goes to $8.04 from $6.71. Pricing has fallen sharply over the past 2-3 weeks, but…

2024 has borne a striking resemblance to 2014/2015 – sharp contraction in cattle herd (bottomed in 2014, down 9% from 2007 peak), dropping feed costs, bird flu and supply challenges within the broiler industry. This…

Although below us and consensus, CALM reported relatively strong Q4 results. Reported EPS were $2.32, equal to our projection, but our estimate did not include insurance recoveries (we exclude those as they are largely nonrecurring…

Pricing during the H2 of CALM’s Q4 was weaker than we had originally anticipated and feed costs were somewhat higher. Further, we believe its results may have been pressured by lower fixed cost absorption (likely…

With the exception of beef processors, the protein industry is enjoying strong, even robust, profitability. Supply has been the key factor, but demand seems to have positively inflected, as well. In our view, this should…

With the exception of beef packers (est losses in the $200-ish/head range), the protein complex has enjoyed robust margins. We estimate that the average BB broiler producer is generating profits approaching $0.30/lb, while small- and…

As we noted in our industry notes published earlier today, we are not utilizing the typical rating system, but instead, are using a forced rank process. This note shows current ranking based upon Friday’s close.

Cal-Maine is a relatively quiet, low profile company, but it is the largest table egg producer in the U.S. and one of the best managed – oftentimes, it is instructive to learn what industry stakeholders…