Cal-Maine Foods , Inc. (NASDAQ:CALM), the largest producer and distributor of fresh shell eggs in the United States, has reached an unprecedented milestone as its stock price soared to an all-time high of $114.25. The company's strong fundamentals are reflected in its attractive P/E ratio of 8.79 and substantial 5.33% dividend yield. According to InvestingPro analysis, the stock appears slightly undervalued at current levels. This remarkable peak reflects a significant surge in the company's market value, marking a robust 1-year change of 109.98%. Investors have shown growing confidence in Cal-Maine Foods, as the company capitalizes on strategic business moves and favorable market conditions, propelling its stock to new heights and rewarding shareholders with substantial gains over the past year. InvestingPro analysis reveals an Excellent Financial Health Score of 4.09, with 16 additional ProTips available to subscribers.
In other recent news, Cal-Maine Foods reported strong results for its second fiscal quarter, exceeding both Stephens' and consensus estimates. The company posted an adjusted earnings per share (EPS) of $4.48, surpassing the expected $4.25 by Stephens and $4.05 consensus estimate. Furthermore, adjusted EBITDA reached $325.4 million, beating the predicted $282.4 million by Stephens and $303.7 million consensus estimate. The robust performance was attributed to increased sales and reduced selling, general and administrative expenses, partially offset by a lower gross margin.
Cal-Maine Foods also reported impressive earnings per share of $4.47, significantly outperforming the projected $2.96, and revenue of $954.7 million, surpassing estimates of $722.04 million. These results were driven by the sale of 329.8 million dozen eggs, a 14.5% increase year-over-year, and an average selling price per dozen rising to $2.74 from $1.73 in the previous year's quarter.
In response to these developments, Stephens maintained an Equal Weight rating on Cal-Maine Foods but raised its price target from $88 to $97. The firm projects that the company is poised for continued significant earnings growth, especially considering the ongoing impact of the Highly Pathogenic Avian Influenza (HPAI) and the current high pricing levels for eggs. Lastly, Cal-Maine declared a quarterly dividend of $1.49 per share.
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