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Food & drink

Cal-Maine Foods' first quarter not what it was cracked up to be, with net loss wider than expected

The Nasdaq-listed egg producer reported a quarterly net loss of US$16.0mln, or 33 US cents a share, well below consensus for a loss per share of 18 US cents

Cal-Maine Foods Inc. (NASDAQ:CALM) saw its shares fall in pre-market trading after the egg producer’s first-quarter net loss proved wider than expected, although it saw a narrowing from the year earlier loss.

The Nasdaq-listed firm reported a quarterly net loss of US$16.0mln, or 33 US cents a share, versus a US$30.9mln, or 64 US cents a share loss in the same period a year ago, but well below consensus for a loss per share of 18 US cents.

The group saw its revenue for the quarter to September 2 rise to US$262.8mln, up from US$239.8mln, but that was also below the consensus of US$264.1mln.

It said the amount of dozen boxes of eggs sold increased to 249,464 from 242,325 and the net average selling price per dozen increased to $1.017 from $0.952, while the net average price of specialty eggs decreased to $1.878 per dozen from $1.973.

Cal-Maine’s chief executive, Dolph Baker said: “While we are disappointed to report a loss for the quarter, we are encouraged by the year-over-year improvement in our performance."

He added: “Our results reflect continued solid retail demand and a modest increase in both volumes and prices compared with the first quarter of fiscal 2017."

In pre-market trade, Cal-Maine shares were 2.7% lower at US$40 each.

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