Cal-Maine Foods falls after co swings to quarterly loss on decline in egg prices
CALM•Shares fall after quarterly loss
Shares of egg supplier Cal-Maine Foods CALM.O were down as much as 7.6% at $80.59 in early trading after the company swung to a loss in the fourth quarter following a sharp decline in egg prices as the industry moved from supply shortages last year to oversupply.
Cal-Maine posted a quarterly loss of 76 cents per share, after profit of $7.1 per share a year ago; analysts estimated a profit of 8 cents per share, according to LSEG. The company reported fourth-quarter revenue of $552.6 million, missing analysts' estimates of $563.8 million.
Recent settlement with U.S. authorities
Last month, the U.S. Justice Department and a coalition of 17 states reached a settlement with Cal-Maine Foods and two other major egg producers over an investigation into alleged manipulation of egg prices.
As of the last close, the stock was up about 10% year to date.
Management cites oversupply and low egg prices
During the quarter, industry oversupply drove wholesale shell egg prices to historically low inflation-adjusted levels, Chief Executive Sherman Miller said.
CALM's prepared foods production capacity is projected to rise over 60% from the end of fiscal 2026 to the first half of fiscal 2028.
