Things are looking sunnier for Cal-Maine Foods (CALM) - Get Cal-Maine Foods Inc. Report, one of the nation's largest egg producers, as its shares were buoyed by a strong quarterly performance and its report that it's seen no supply-chain disruption during the coronavirus outbreak.
Cal-Maine's stock at last check climbed 3.7% to $44.
The Jackson, Miss., company reported that for the third quarter ended Feb. 29, earnings were 29 cents a share, beating analyst estimates of 19 cents.
Cal-Maine's revenue declined 10% to $345.6 million but beat analyst estimates of $338 million.
While supermarkets and food suppliers have been under tremendous strain amid the disruptions caused by covid-19, Cal-Maine Chairman and Chief Executive Dolph Baker said in a statement that the egg producer's facilities "are operating normally, and we have not experienced any supply chain or delivery disruptions."
The company warned, however, that prices could become more volatile, given the "ongoing uncertainties" surrounding the coronavirus pandemic and its impact on supply chains.
In fact, in March, "market prices have moved significantly higher to record levels," Baker said.
Still, for the quarter that ended in February, before the global disruptions caused by Covid-19 hit their current level, one of Cal-Maine's biggest concerns was its ability to price its product amid a market relatively awash in eggs.
While revenue fell by nearly $40 million during the quarter, sales volume was in line with the year-earlier period. Cal-Maine's average egg sales price dropped 10%.
Overall, egg prices in the Southeast fell 14% in the quarter, the company said.