SerpApi.Org
Cal-Maine Foods swung to a fiscal fourth-quarter loss as sales tumbled, hurt by historically low egg prices.
The egg producer and distributor on Wednesday posted a loss of $35.9 million, compared with a profit of $342.5 million in last year’s comparable quarter. On a per-share basis, the loss came out to 76 cents, compared with analyst views for earnings of 8 cents, according to FactSet.
Sales fell 50% to $552.6 million and missed Wall Street models for $563.8 million.
Chief Executive Sherman Miller said Cal-Maine faced a particularly challenging quarter, as oversupply drove egg prices to historically low inflation-adjusted levels. The average selling price per dozen of conventional eggs decreased more than 70% during the period.
“This dynamic was largely supply-driven rather than demand-driven, and we continue to see favorable long-term demand fundamentals across our end markets,” he said, adding that the challenging quarter reinforced the importance of the company’s continuing aim to diversify its sales mix.
Conventional egg sales decreased 71%, hurt by substantially lower pricing. Sales of specialty eggs—which include free-range, pasture-raised and other premium varieties—were down 17%, also hurt by lower selling prices and sales volumes.
Cal-Maine said it is continuing work to grow its prepared foods unit, adding additional capacity and improving utilization.
Looking ahead, Miller said Cal-Maine is well positioned as market conditions improve. “Early indications point to improving supply-demand balance, supporting a more constructive egg pricing environment heading into the fall, which is historically a seasonally stronger period,” he noted.
Write to Connor Hart at [email protected]