Earnings Results: Cal-Maine stock drops 15% as plunging egg prices cut into profit

Earnings Results: Cal-Maine stock drops 15% as plunging egg prices cut into profit
By: market watch Posted On: October 03, 2023 View: 28

Shares of Cal-Maine Foods Inc. fell in the extended session Monday after a 30% drop in egg prices cut deep into the egg producer’s profitability, and revenue fell more than Wall Street expected.

Cal-Maine shares CALM, -0.04% dropped nearly 15% in after-hours trade Tuesday after it reported fiscal first-quarter results, following a less-than 0.1% decline to close the regular session at $47.50.

For the quarter ended Sept. 2, net income plummeted 99% to $926,000, or 2 cents a share, from $125.3 million, or $2.57 a share, in the same period a year ago. That fell well short of the FactSet consensus analyst estimate of 33 cents a share, or a decline of about 87%.

CALM after-hours activity (yellow) following Tuesday’s regular session (blue).

FactSet

Meanwhile, sales fell to $459.3 million from $658.3 million in the year-ago period, short of analyst forecasts of $479.5 million.

The number of eggs sold fell to 273.2 million from 275.3 million in the year-ago period, as average prices fell to $1.59 per dozen from $2.28 a year ago.

Cal-Maine share are down 14% over the past 12 months, compared with a 12% gain for the S&P 500 index SPX.

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