By Patrick Thomas

Cal-Maine Foods's stock rose about 5% after hours as the nation's largest egg producer reported stronger-than-expected quarterly profits despite bird flu roiling the sector.

The company's stock is up nearly 90% over the past 12 months as the spread of bird flu continues to kill off flocks throughout the U.S., tightening the supply of egg-laying hens and sending prices higher. Wholesale large egg prices in December set a fresh U.S. record at almost $6 a dozen.

Demand for eggs among consumers also hasn't slowed down. Cal-Maine sold 14% more shell eggs during its fiscal second quarter, compared with the prior year period, the company said Tuesday. At the same time lower grain prices are helping egg companies save money on livestock feed.

For the period ended Nov. 30, Cal-Maine posted a profit of $219 million, or $4.47 a share, compared with $17 million in the prior-year period. Analysts expected a per-share profit of $4.05.

The latest outbreak of avian flu, which started spreading on American farms in early 2022, has been the deadliest on record. To limit the spread of the virus, whole poultry flocks are killed after an infection is confirmed.

Cal-Maine said its facilities in Kansas and Texas are fully operational after having their own bird flu outbreaks in the company's last fiscal year. Cal-Maine has roughly 50 million hens, the most of any U.S. egg company, according to the latest survey data from meat-industry publication Watt Poultry USA. Cal-Maine Chief Executive Sherman Miller said Tuesday that the company plans to continue to expand its flock.

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January 07, 2025 17:33 ET (22:33 GMT)

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