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The Markets
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The Markets
by Proactive
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Food & drink

Cal-Maine Foods shares crack after drop in egg prices hits profit

Cal-Maine Foods (NASDAQ:CALM) Inc shares scrambled 12% lower after a 30% drop in egg prices cut deep into the egg producer's profit, while revenue fell more than Wall Street expected.

The company said late Tuesday that net income for the quarter ended September 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.

This was well short of the FactSet consensus estimate of 33 cents a share.

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.

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