Cal-Maine Foods Posted Its 3Q16 Results, Stock Rose 8%
Stock rose 8%
Cal-Maine Foods (CALM) reported its fiscal 3Q16 results on March 28. The stock rose 8.7% after the earnings release and closed at $54.51—compared to $50.12 on March 24. The stock rose due to a 27% jump in earnings in the third quarter. The revenue and earnings surpassed estimates by 2% and 34%, respectively. This showed its impact on the stock.
Cal-Maine’s stock has gained 8% since its last quarter earnings release on December 23. The stock also rose 2% after the company reported its fiscal 2Q16 results due to tremendous growth in revenue and earnings. The stock gained 23% in fiscal 2015 due to positive earnings growth. Cal-Maine Foods has returned ~12% year-to-date. It outperformed the Market represented by the S&P 500 Index by 10% as of March 29. The stock fell around 2% and closed at $53.4 on March 29.
Peers in the industry
Cal-Maine Foods’ main peers in the farm products industry include Fresh Del Monte Produce (FDP) and Industrias Bachoco (IBA). Other peers such as Hormel Foods (HRL) and Pilgrim’s Pride (PPC) returned 13% and 12%, so far, in 2016. They closed at $44.4 and $24.97, respectively, on March 29.
The PowerShares Dynamic Food and Beverage (PBJ) invests 2.5% in Cal-Maine Foods and 2.6% in Fresh Del Monte Produce. PBJ closed at $32.42 and returned 0.68%. Some of Cal-Maine’s recognized brands include Eggland’s Best, Land O’ Lakes, Farmhouse, and 4-Grain.
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