Cal-Maine stock takes a beating as plunging egg prices cut into profit

By Wallace Witkowski

Profit falls 99% as average price of a dozen eggs drops to $1.59 from last year's $2.28

Shares of Cal-Maine Foods Inc. took a beating Wednesday, 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) dropped 12.1% in premarket trading, putting it on track to open at a 20-month low.

The company said late Tuesday that net income for the quarter ended Sept. 2 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 estimate of 33 cents a share.

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.

-Wallace Witkowski

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10-04-23 0746ET

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