Inflation, Higher Costs Eat Into Cal-Maine’s Profit

Shares of Cal-Maine (Nasdaq: CALM) dropped 7.05% in after-hours trading on Tuesday after the fresh egg producer posted disappointing earnings. Financials: Cal-Maine reported that net sales reached $390 million, which was better than expected. But the company’s earnings per share of $0.02 was lower than most expectations. The Good: Demand was strong in the quarter and net sales increased 12.5% year-over-year. The Bad: Net income only reached $1.2 million, which was way behind the $12.2 million that the company achieved in the same quarter last year. Cal-Maine cited inflationary headwinds and higher feed costs as two challenges. Final Thoughts: Despite some economic headwinds, shares of Cal-Maine are still positive for the year. Can the company overcome these economic issues in 2022? Hope you enjoyed this commentary. Please subscribe to Early Bird, a free daily newsletter that helps you identify investment trends: https://earlybird.email/

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EarlyBird

Dec 29, 2021

· POSITION CLOSED

-18.71%

Position Return %

-6.58

Position Return

35.17

Price When Posted

CALM

Cal-Maine Foods, Inc.

47.99

1.10 2.36%

Current Price

Inflation, Higher Costs Eat Into Cal-Maine’s Profit

bearish

Shares of Cal-Maine (Nasdaq: CALM) dropped 7.05% in after-hours trading on Tuesday after the fresh egg producer posted disappointing earnings.

Financials: Cal-Maine reported that net sales reached $390 million, which was better than expected. But the company's earnings per share of $0.02 was lower than most expectations.

The Good: Demand was strong in the quarter and net sales increased 12.5% year-over-year.

The Bad: Net income only reached $1.2 million, which was way behind the $12.2 million that the company achieved in the same quarter last year. Cal-Maine cited inflationary headwinds and higher feed costs as two challenges.

Final Thoughts: Despite some economic headwinds, shares of Cal-Maine are still positive for the year. Can the company overcome these economic issues in 2022?