06:31 AM EST, 01/08/2025 (MT Newswires) -- Cal-Maine Foods ( CALM ) shares rose early Wednesday as the egg producer's fiscal second-quarter results increased year over year driven by robust demand for shell eggs and higher prices.

The company posted net income of $4.47 per share for the three-month period ended Nov. 30, up from $0.35 a year earlier, it said late Tuesday. The consensus among three analysts on FactSet was for GAAP EPS of $4.05. The stock gained 3.8% in premarket activity.

Sales advanced to $954.7 million from $523.2 million in the prior-year quarter, while two FactSet analysts expected $751.5 million. The rise was mainly due to an increase in the net average selling price for shell eggs, as well as an increase in total dozens sold, Chief Financial Officer Max Bowman said in a statement.

"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," Chief Executive Sherman Miller said. "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."

The company sold 329.8 million dozen shell eggs in the quarter, up from 288.2 million in the prior-year quarter. Production inclined to 288 million dozen eggs from 265.1 million last year. The net average selling price for a dozen eggs moved up to $2.74 from $1.73, while the price for specialty eggs grew to $2.39 from $2.28.

Selling, general and administrative costs increased to $77.6 million from $76.6 million last year, according to the company. Farm production expenses per dozen fell 8.5% versus last year, mainly due to more "favorable" commodity pricing for key feed ingredients, Bowman said. Feed costs per dozen eggs declined about 13% year over year, the CFO added.

"As demand continues to outpace supply, we remain focused on making additional strategic investments to expand our operations," Miller said. The company currently has $60 million in new capital projects for the expansion of its cage-free capacity, while it plans to invest $15 million to expand its egg products processing facility in Georgia, according to Miller.

Cal-Maine said its Kansas and Texas facilities, which experienced the bird flu virus in fiscal 2024, are now fully operational. "We are steadfast in our efforts to effectively manage our operations and promote responsible and sustainable production," Miller said.