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Egg giant posts massive quarterly loss
22 Jul
Summary
- Company reported a loss per share of -$0.76, missing analyst expectations.
- Quarterly revenue fell 49.9% year over year to $552.6 million.
- Expansion plans continue despite current challenging market conditions.
Cal-Maine Foods revealed significantly underperforming fourth-quarter financial results, largely due to a notable oversupply in the egg industry that drove down wholesale prices. The company reported a loss per share of -$0.76, a stark contrast to analysts' projected earnings. Consequently, Cal-Maine shares experienced a decline in premarket trading following the earnings announcement. Revenue saw a substantial decrease, falling 49.9% to $552.6 million compared to the same period last year. This downturn impacted both conventional and specialty egg sales, with average selling prices and sales volumes decreasing across categories. Despite the current financial headwinds, Cal-Maine Foods is pressing forward with its long-term strategic expansion initiatives. These include growing its Specialty Shell Egg footprint and investing in increased Prepared Foods production capacity, with new capacity expected by mid-fiscal 2028. The company also confirmed its share repurchase program remains active while pausing dividend declarations under its variable dividend policy for the fourth quarter.
