Why Are Cal-Maine (CALM) Shares Soaring Today
What Happened:
Shares of egg company Cal-Maine Foods (NASDAQ:CALM) jumped 13.7% in the morning session after the company reported fourth-quarter results that exceeded analysts' EPS expectations by a large magnitude. Its revenue also outperformed Wall Street's estimates. While no specific numerical guidance was given, the commentary was positive. There have been fears of highly pathogenic avian influenza's impact on the industry, and the company stated that "While the more recent outbreaks of HPAI have also affected supply and caused market prices to move higher, the overall market impact has not been as severe." Additionally, it seems like the backdrop for eggs is strong, with Cal-Maine stating that "Demand for shell eggs has remained strong as consumers look for an affordable and nutritious protein option." Overall, this was a good quarter for Cal-Maine. After the initial pop the shares cooled down to $61.07, up 3.7% from previous close.
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What is the market telling us:
Cal-Maine's shares are not very volatile than the market average and over the last year have had only 5 moves greater than 5%. Moves this big are very rare for Cal-Maine and that is indicating to us that this news had a significant impact on the market's perception of the business.
Cal-Maine is up 7.7% since the beginning of the year, and at $61.07 per share it is trading close to its 52-week high of $61.84 from March 2024. Investors who bought $1,000 worth of Cal-Maine's shares 5 years ago would now be looking at an investment worth $1,462.
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