Cal-Maine Foods Stock Slides on Q1 Earnings Miss
Despite posting the strongest first quarter in its history, the nation's largest egg producer fell short of Wall Street's revenue and profit expectations.
Shares of Cal-Maine Foods (NASDAQ: CALM) dropped more than 7% in pre-market trading Wednesday after the company reported first-quarter financial results that failed to meet analyst expectations. The sell-off occurred despite the egg producer delivering what it called the strongest first quarter in its history, suggesting investors were anticipating even more robust performance.
The company announced , which was a significant 34.6% increase year-over-year but fell short of the Wall Street consensus estimate that ranged from $4.65 to $5.20 per share. Revenue for the quarter also showed strong growth, rising 17.4% to $922.6 million, yet it slightly missed analyst forecasts.
Driving the record performance was a 6.5% increase in shell egg sales, supported by higher volumes and prices. A key contributor to the revenue surge was the prepared foods division, which grew an astounding 839.1%, largely due to the recent , which added over $70 million in sales. The company also benefited from a 4.3% decrease in feed costs, a significant operational expense.
Despite these historically strong figures, the negative market reaction underscores investor focus on forward guidance and relative performance against expectations. The indicates that the market had priced in a more substantial beat, with concerns potentially lingering around the future stability of egg prices and profit margins. As the largest producer of fresh shell eggs in the United States, Cal-Maine's performance is often seen as a bellwether for the industry. The company's board declared a cash dividend of approximately $1.37 per share based on the quarterly results.