Cal-Maine Foods (NASDAQ:CALM) tumbled in morning trades after the largest U.S. egg supplier reported downbeat earnings its fiscal first-quarter hurt by the impact of the national outbreak of avian influenza.
Shares fell to $51.20, the lowest intraday price since September 2, and were trading at $51.64, down 10.4% at 11:29 a.m. in New York. The stock had risen 35% over the past year through Friday.
Net income quadrupled to $609.9mln, or $2.95 per share in the three months through August 29, from $143.0mln, or $0.57 per year earlier, the Jackson, Mississippi-based company said.
The average of four analysts’ estimates compiled by Capital IQ was for profit of $3.14.
Sales surged 71 percent to $609.9mln, topping the Wall Street consensus of 597.7mln million.
Costs increased for purchasing eggs, packaging and security measures to stop future bird flu outbreaks overshadowed benefits from higher egg prices that resulted from the reduction in the number of hens this spring.