Executive Summary

Q4 FY2020 was a sharp rebound driven by COVID-19 pantry loading and Easter seasonality: net sales rose 61.6% year over year to $453.3M and diluted EPS swung to $1.24 from $(0.41) a year ago, with gross margin expanding to ~26.8% as egg prices surged and volumes increased 10.9% YoY .
Operating income flipped to $76.1M from a $(30.4)M loss in the prior-year quarter; management cited a 62.4% increase in market prices versus the average of the first three fiscal quarters and 1.5% lower feed costs per dozen as key drivers .
Specialty egg revenue grew to $133.3M (29.9% of egg sales) on 10.4% higher specialty dozens; management reiterated multi-year investments ($371.7M+) to expand cage-free capacity given state-level mandates covering ~22.9% of the U.S. population .
No dividend was declared due to the variable dividend policy and cumulative loss threshold; the remaining amount to recover improved to $1.4M at quarter-end (from $61.9M in Q3), a potential catalyst for future payouts if profitability persists .

What Went Well and What Went Wrong

What Went Well
- Demand and pricing inflection: Southeast large market average price for conventional eggs rose to $1.71/dozen (high $3.18, low $1.02), driving net sales up 61.6% YoY and a return to strong profitability; sales volumes rose 10.9% YoY .
- Margin recovery and cost control: Operating income hit $76.1M vs. a $(30.4)M loss a year ago; farm production costs/dozen fell 0.8% with feed costs/dozen down 1.5% YoY .
- Specialty positioning: Specialty revenue increased to $133.3M with specialty dozens up 10.4% YoY; management emphasized cage-free investments to meet legislative timelines across multiple states .
What Went Wrong
- No dividend declared for Q4 due to cumulative loss requirement under the variable dividend policy, despite strong profitability this quarter; $1.4M cumulative loss remains to be recovered .
- Exposure to commodity and macro volatility: Management flagged potential volatility from COVID-19-related supply chain issues, weather, and geopolitical/trade factors affecting grain costs and operations .
- Mix effect on specialty share: Despite higher specialty revenue, specialty as a percent of egg sales dollars fell to 29.9% vs. 44.1% in prior-year Q4 due to outsized strength in conventional pricing .

Financial Results

Metric	Q4 FY2019	Q2 FY2020	Q3 FY2020	Q4 FY2020
Net Sales ($M)	$280.6	$311.5	$345.6	$453.3
Gross Profit ($M)	$12.8	$29.4	$49.8	$121.5
Gross Margin (%)	4.6%	9.4%	14.4%	26.8%
Operating Income ($M)	$(30.4)	$(16.6)	$5.2	$76.1
Net Income ($M)	$(19.6)	$(10.1)	$13.7	$60.5
Diluted EPS ($)	$(0.41)	$(0.21)	$0.28	$1.24

Notes: All figures are as reported. Margins are computed from reported line items with source citations shown in each cell .

KPIs and Mix

KPI / Mix	Q4 FY2019	Q2 FY2020	Q3 FY2020	Q4 FY2020
Dozens Sold (000)	254,772	261,026	271,278	282,422
Dozens Produced (000)	222,325	231,467	239,072	242,962
Net Avg Selling Price/Dozen ($)	1.062	1.160	1.236	1.575
Specialty Revenue ($M)	$119.9	$109.4	$117.7	$133.3
Specialty % of Egg Sales (Dollars)	44.1%	36.0%	35.0%	29.9%
Specialty % of Egg Sales (Dozens)	24.5%	22.3%	23.0%	24.4%
Specialty ASP/Dozen ($)	1.919	1.878	1.887	1.934
Feed Cost/Dozen ($)	0.411	0.416	0.406	0.405

Estimates vs. Actuals

S&P Global consensus EPS and revenue estimates for Q4 FY2020 (and prior two quarters) were not retrievable due to data access limits; beat/miss analysis vs. consensus is therefore unavailable at this time. We attempted to fetch S&P Global consensus for EPS and revenue for Q2–Q4 FY2020 but encountered an API daily limit error [Values not available from S&P Global due to access limits].

Guidance Changes

Cal-Maine did not issue formal quantitative guidance; management provided qualitative outlook on demand, supply, feed costs, and cage-free capacity.

Metric	Period	Previous Guidance	Current Guidance	Change
Formal revenue/margin guidance	FY2021	Not provided	Not provided	Maintained (no guidance)
Feed cost outlook	Near term	Adequate corn/soy supplies; potential volatility from tariffs/COVID	Adequate supplies; volatility risk from COVID, weather, trade	Maintained cautionary outlook
Cage-free capacity	Multi-year	Ongoing expansion in FL, TX, UT	Continued investments; $371.7M+ to date; states mandating cage-free (2022–2026)	Reiterated and expanded context
Dividend (variable policy)	Q3 FY2020	No dividend; cumulative loss to recover $61.9M	No dividend; cumulative loss to recover $1.4M	Improved toward eligibility

Earnings Call Themes & Trends

Note: The company did not host earnings calls during this period; themes reflect press releases. Cal-Maine announced it would debut quarterly earnings calls starting in fiscal Q1 2026 (October 2025) .

Topic	Previous Mentions (Q2 FY2020 and Q3 FY2020)	Current Period (Q4 FY2020)	Trend
Supply/demand and pricing	Oversupply pressured prices; Southeast large down 12.7% YoY in Q2; hen numbers declining and hatch down in Q3	Prices rose 62.4% vs. avg of first three quarters; Southeast large avg $1.71 with high $3.18; sales volumes +10.9% YoY	Improving pricing and demand
Specialty/cage-free strategy	Emphasis on specialty; capacity expansions in FL, TX, UT	Specialty revenue $133.3M; cage-free investments $371.7M+; state mandates across 22.9% of U.S. population	Continued buildout
Feed costs/supply	Costs relatively flat in Q2; feed costs down 3.6% in Q3; warned on volatility	Feed cost/dozen down 1.5%; adequate supply but volatility from COVID/weather/trade	Favorable but cautious
COVID-19 operations	Facilities operating normally; supplemental pay; strict protocols	~$2.8M COVID-related expenses; ongoing precautions and minimal disruptions	Ongoing management focus
Dividend policy/eligibility	No dividend; large cumulative loss to recover ($61.9M)	No dividend; cumulative loss now $1.4M	Improved toward payout trigger

Management Commentary

“Demand for eggs increased and market prices rose 62.4 percent during our fourth fiscal quarter over the average price for the first three quarters… As a result, our sales volumes were up 10.9 percent compared with the fourth quarter of fiscal 2019.”
“Operating income was $76.1 million in the fourth quarter… We also benefitted from a more favorable effective tax rate… we recorded a tax benefit of $2.4 million related to the carryback provisions of the [CARES Act].”
“Specialty eggs are an important part of our growth strategy… We have invested over $371.7 million… Additional cage-free capacity will come online in Florida, Texas and Utah…”
“Hen numbers… as of June 1, 2020, were 319.8 million… 13.9 million less hens than reported a year ago… hatch… decreased 5.0 percent [YTD], including a 13.1 percent decrease in May.”
“For fiscal 2020, we incurred expenses of approximately $2.8 million related primarily to supplemental pay [for COVID-19].”

Q&A Highlights

Cal-Maine did not conduct an earnings call for Q4 FY2020; the company announced it would debut quarterly earnings calls and webcasts beginning with fiscal Q1 2026 (October 2025) .

Estimates Context

We attempted to retrieve S&P Global consensus EPS and revenue estimates for Q2–Q4 FY2020 to assess beats/misses but encountered a data access limit error; therefore, consensus comparisons are unavailable at this time. We will update when S&P Global data access is restored [Values not available from S&P Global due to access limits].

Key Takeaways for Investors

The quarter’s upside was driven by a sharp pricing inflection and higher volumes, driving significant operating leverage and margin expansion; sustainability of pricing depends on supply normalization (lower hen counts/hatch) and consumer demand trends .
Specialty strategy remains central; continued cage-free capex positions CALM for mandated shifts in large states through 2026, supporting mix/pricing resilience over time .
Cost discipline aided results; feed costs per dozen declined and farm production cost efficiency supported margins, though management keeps a cautious stance on commodity volatility .
Dividend resumption could be a near-term catalyst once the small remaining cumulative loss ($1.4M) is offset; sustained profitability would trigger the variable dividend .
Absent formal guidance and (historically) no conference calls in 2020, the press release commentary is the primary information source; watch for future cadence of investor communications and any reinstatement of dividends as indicators of confidence .

Sources: Q4 FY2020 8-K and press release (financials, KPIs, commentary) ; Q3 FY2020 8-K and press release ; Q2 FY2020 8-K and press release ; Business Wire release corroborating Q4 FY2020 results .

CAL-MAINE FOODS INC (CALM)·Q4 2020 Earnings Summary