Cal-Maine Foods Inc Q1 Profit Falls, misses estimates

Cal-Maine Foods Inc (CALM) released a profit for first quarter that decreased from last year and missed the Street estimates.

The company’s bottom line came in at $0.9 million, or $0.02 per share. This compares with $125.3 million, or $2.57 per share, in last year’s first quarter.

Analysts on average had expected the company to earn $0.33 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 30.2% to $459.3 million from $658.3 million last year.

Cal-Maine Foods Inc earnings at a glance (GAAP) :

-Earnings (Q1): $0.9 Mln. vs. $125.3 Mln. last year.
-EPS (Q1): $0.02 vs. $2.57 last year.
-Analyst Estimates: $0.33
-Revenue (Q1): $459.3 Mln vs. $658.3 Mln last year.

European Economic News Preview: Spain Unemployment Data Due

Unemployment from Spain is the top economic news due on Tuesday, headlining a light day for the European economic news.

At 2.30 am ET, the Federal Statistical Office releases Swiss consumer prices for September. Inflation is forecast to rise to 1.8 percent from 1.6 percent in August.

At 3.00 am ET, Spain’s labor office is scheduled to publish unemployment data for September. The jobless claims are forecast to fall 12,200 after an increase of 24,800 in August.

At 6.00 am ET, Italy’s statistical office releases non-EU trade data for July. The surplus totaled EUR 9.45 billion in June.

European Shares Rebound On China Recovery Hopes

European stocks rose on Wednesday to snap a four-day winning streak after data showed profits at China’s industrial firms in August posted a surprise surge of 17.2 percent from a year earlier.

Also, China is expected to achieve economic growth of slightly more than 5 percent this year and there is no basis for the feared ‘Japanification’, an adviser to the central bank told an Economic Forum.

Meanwhile, investors shrugged off the results of a GfK institute survey showing that German consumer confidence is unlikely to recover in 2023 amid persistently high inflation.

The forward-looking consumer climate index fell to -26.5 in October, from a revised lower -25.6 the prior month.

The pan European STOXX 600 was up 0.2 percent at 448.42 after declining 0.6 percent on Tuesday.

The German DAX and the U.K.’s FTSE 100 were marginally higher, while France’s CAC 40 edged up 0.2 percent.

H&M Group shares jumped 3.7 percent. The Swedish retailer said it would buy back the company’s own B shares for 3 billion kronor starting from September 27.

Netherlands’ largest insurer NN Group plunged 12 percent. The company said that there could be “substantial” financial consequences for the company after an unfavorable court ruling.

Rival Dutch insurance firm ASR Nederland fell over 7 percent and Aegon gave up 2.5 percent.

Spirent Sees 20% Decline In 9-month Revenue On Weak Demand

Spirent Communications Plc (SPT.L,SPM), a British telecom company said on Wednesday that it expects a decline revenue for nine-month period to September 30 and full year due to a fall in demand.

Revenue is expected to be down 20 percent broadly, in line with the reduction seen in the first half, and is expected to continue at this rate for the full financial year.

Order intake for the first nine months was 24 percent down compared to the same period last year.

Spirent does not see an improvement in its year-on-year performance in the fourth-quarter also.

The telecommunications market is extremely challenged at this time, with Spirent’s largest customers delaying their expenditure and technology investments, the company said in a statement.

For full year, the company noted that the negative operating leverage will impact operating profit materially.

Looking ahead, Spirent, said: “As a result, there is not enough near term strength in the orderbook to support our expectations for the final quarter trading, and accordingly we reduce our outlook for the near term. The impact of negative operating leverage will very materially affect operating profit in this financial year…”

Tesco H1 Profit Surges; Sees FY24 Retail Adj. Operating Profit Above Medium-term View

British retailer Tesco Plc (TSCO.L,TSCDY.PK) reported Wednesday that its first-half profit before tax grew significantly reflecting strong trading performance and the absence of prior year’s 626 million pounds non-cash impairment charge.

Looking forward for fiscal 2024, the company said it now expects to deliver retail adjusted operating profit between 2.6 billion pounds and 2.7 billion pounds, ahead of medium-term guidance range of 1.4 billion pounds to 1.8 billion pounds.

The company continues to expect Bank adjusted operating profit of between 130 million pounds and 160 million pounds.

The first-half profit before tax surged 207.3 percent to 1.22 billion pounds from last year’s 396 million pounds. Earnings per share were 12.83 pence, up 292.4 percent from 3.27 pence last year.

Adjusted earnings per share were 12.26 pence, compared to 10.50 pence a year ago.

Revenue was 34.15 billion pounds, up 5 percent from last year’s 32.52 billion pounds. Fuel sales were down 20.5 percent due to lower retail prices

Group sales, excluding VAT and fuel, grew 8.9 percent on a reported basis and 8.4 percent at constant currency rates to 30.75 billion pounds.

Further, the company announced interim dividend per share of 3.85 pence, to be paid on November 24 to shareholders who are on the register of members at close of business on October 13.

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