Shares of Cal-Maine Foods (CALM), the largest producer and distributor of shell eggs in the United States, surged 5.6% in pre-market trading on Wednesday. The stock rallied after the company reported exceptional fiscal second-quarter 2025 earnings and revenue, driven by a combination of strong demand, higher egg prices, and increased sales volumes.

For the quarter ended November 30, 2024, Cal-Maine posted earnings of $4.47 per share, significantly outpacing Wall Street estimates of $4.05 per share. Net sales soared to $954.7 million, beating consensus expectations of $751.5 million. These impressive results were fueled by a significant rise in egg prices, which the company attributed to supply constraints caused by recent outbreaks of highly pathogenic avian influenza (HPAI).

"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," said Cal-Maine CEO Sherman Miller. "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."