Cal-Maine Foods Inc. (NASDAQ:CALM) slid in premarket trade after its second quarter earnings missed market expectations.
In a statement, the company said it recorded a net loss of US$26.1mln, or 54 US cents a share, during the quarter, a wider loss of US$23mln, or 48 US cents a share, a year ago.
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The net loss figure includes a charge of US$52.8mln, or US$1.09 a share, which relates to antitrust claims made by several large direct action purchasers.
If the charge is excluded, the company recorded EPS of 55 US cents, below the market consensus of 68 US cents.
In the quarter, sales rose 42% to US$361.2mln, also coming below market consensus of US$364mln.
Chief Executive Dolph Baker said that the company denies liability in the antitrust case but decided to settle the case to remove the overhang of uncertainty and risk.
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"While the charge related to this settlement affected our financial results for the second quarter of fiscal 2018, we had a solid operating performance during the quarter," he said, pointing to the strong egg market and improved pricing.
In premarket trade, Cal-Maine shares were down 5.25% at US$41.50.