By Emily Dattilo

Shares of Cal-Maine Foods were trading higher after the egg producer beat quarterly earnings estimates thanks to strong demand and higher prices.

Cal-Maine stock gained 4.7% to $108.50 in premarket trading Wednesday. Over the last 12 months, shares have soared 90%.

For its second fiscal quarter ended Nov. 30, the company reported earnings of $4.47 per share, beating Wall Street's call for $4.05, according to FactSet. Net sales of $954.7 million beat the consensus estimate of $751.5 million.

"Robust demand for shell eggs resulted in a significant increase in dozens sold for the quarter, which included the seasonal boost leading up to the Thanksgiving holiday and sales from our latest acquisition completed in June," CEO Sherman Miller said in the earnings release.

"Our results also reflect higher market prices, which have continued to rise this fiscal year as supply levels of shell eggs have been restricted due to recent outbreaks of highly pathogenic avian influenza ('HPAI')," he added.

As for the bird flu, nearly a thousand U.S. dairy herds are known to have been infected with the virus since last March, and nearly 20 million domestic poultry were destroyed in the U.S due to infections in December alone, Barron's Josh Nathan-Kazis reported Tuesday.

However, Cal-Maine said, citing the U.S. Centers for Disease Control and Prevention, the virus "cannot be transmitted through safely handled and properly cooked eggs."

There is no known risk related to HPAI associated with eggs that are currently in the market and no eggs have been recalled," the company added.

Write to Emily Dattilo at emily.dattilo@dowjones.com

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January 08, 2025 07:51 ET (12:51 GMT)

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