Cal-Maine Suffers from Poor Sales
Cal-Maine Foods (NASDAQ:CALM) dumped some of its stock strength Wednesday after the company came out with disappointing sales figures due to lower prices. The egg producer reported fiscal first-quarter earnings of two cents per share, while analysts polled by StreetAccount had called for earnings of 33 cents per share. Revenue was also lackluster.
The company reported quarterly net sales of $459.3 million, quarterly net income of $926,000 or $0.02 per basic and diluted common share
This morning's news release also pointed to net average selling price for specialty eggs increased 8.4% quarter-over-quarter
It also provided a cash dividend of $294,000, or $0.006 per share, pursuant to the Company's established dividend policy.
CEO Sherman Miller said“Our results for the first quarter of fiscal 2024 reflect the current dynamic market conditions. After reaching record high levels in fiscal 2023, average selling prices for shell eggs have since returned to more normalized levels as the overall egg supply recovers from the most recent highly pathogenic avian influenza outbreak, which depleted the national hen supply. Customer demand has been favorable with conventional egg volumes higher than a year ago, offset by lower sales of specialty eggs.
“We continue to focus on offering customers a wide range of quality choices in shell eggs, as well as egg products offerings, with a favorable product mix in line with changing consumer demand trends.”
CALM shares plummeted $3.51, or 7.4%, to $43.98.
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