Cal-Maine Foods, the nation’s largest egg producer, will release its second-quarter results before the market opens on Wednesday. Analysts surveyed by Refinitiv project net sales of approximately $660 million, up 2.1% from the prior quarter, and adjusted earnings per share of $0.40. In the prior quarter, Cal-Maine delivered net sales of $646 million and generated a gross margin of 18.5%. Investors will be watching closely for commentary on feed-cost trends, which have compressed margins by roughly 120 basis points year-over-year, and for guidance on inventory levels; egg inventories rose 4% month-over-month in April according to USDA data.

Specialty eggs— including organic, cage-free and value-added products— accounted for 32% of Cal-Maine’s net sales, or $210 million, in the most recent quarter, up from 28% a year earlier. That segment delivered an operating margin of 15.2%, compared with 10.8% in the commodity shell-egg business. Management has highlighted a recent rollout of specialty packaging in three Southeastern states, expecting an 8% boost in specialty volumes next quarter. Investors will look for updates on distribution gains with two national grocery chains and any commentary on pricing power in the premium-egg category.