
Cal-Maine Foods Shares Drop 12% After Q1 Earnings Disappointment
Cal-Maine Foods experienced a decline of over 12% in after-hours trading following the announcement of its latest financial results, which revealed earnings per share (EPS) of $0.02—significantly below the consensus estimate of $0.33.
The company’s revenue also saw a substantial drop of 30% year-over-year, totaling $459.3 million, and failing to meet the consensus estimate of $473.37 million. This decline is primarily attributed to a reduction in the net average selling price of conventional eggs, although this was somewhat offset by an increase in the net average selling price of specialty eggs.
CEO Sherman Miller noted, “After reaching record high levels in fiscal 2023, average selling prices for shell eggs have now returned to more normalized levels as the overall egg supply recovers from the recent outbreak of highly pathogenic avian influenza (HPAI), which had severely impacted the national hen supply. Customer demand remains positive, with conventional egg volumes higher than last year, though there has been a decrease in specialty egg sales.”
Miller expressed a positive outlook for Cal-Maine Foods in fiscal 2024, despite continuing challenges from HPAI threats and inflationary pressures. The company plans to concentrate on managing the elements of its business that it can control.