Cal-Maine Foods (CALM 39.10, -2.00) has slid 4.9% after missing first quarter estimates.
The largest egg producer and marketer in the U.S. reported a below-consensus first quarter loss of $0.33 per share on a 9.6% year-over-year increase in revenue to $262.80 million, which was also shy of expectations.
The company noted that the first fiscal quarter is a seasonally slow period for its business. Even with the seasonal weakness, the company's average customer selling prices for all eggs increased 6.8% year-over-year to $1.017/dozen.
Lower institutional demand for egg products and reduced export demand led to an oversupply, which weighed on price growth. According to the USDA, shell egg exports have returned toward historical trends, but remain below a peak that was recorded prior to the outbreak of avian influenza in 2015. The company does not expect a significant improvement in pricing until supply and demand forces stabilize.
Specialty eggs accounted for 21.7% of total sales volume, down from 22.9% one year ago. Specialty egg revenue made up 39.6% of total shell egg revenue, down from 46.7% one year ago. The average selling price of specialty eggs declined 4.8% year-over-year to $1.878/dozen.
Feed costs per dozen produced declined 13.0% to $0.375 thanks to favorable supplies of grain from last fall.