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Cal-Maine Foods Attributes Q1 Miss To Oversupply Of Eggs In 2018

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Cal-Maine Foods Attributes Q1 Miss To Oversupply Of Eggs In 2018

Cal-Maine Foods Inc (NASDAQ: CALM) posted a first-quarter loss Monday of 94 cents per share, which missed the analyst consensus estimate of an 89-cent loss by 5.62%.

This is a 461.54% decrease over earnings of 26 cents per share from the same period last year.

The company reported quarterly sales of $241.2 million, which missed the analyst consensus estimate of $254.52 million by 5.23%. 

"Our financial and operating results for the first quarter reflect the very challenging market conditions that prevailed throughout the summer,” CEO Dolph Baker said in a statement.

“While our sales volumes were up 1.7% over the first quarter last year, the extreme drop in market prices adversely affected our results. The Southeast large market average price for conventional eggs dropped 40.7% for the first quarter of fiscal 2020 compared to the first quarter of fiscal 2019. At the same time, our average sales price was down 30% for the first quarter compared to the same period last year.” 

The significant drop in market prices reflects an oversupply of eggs that began to affect the market starting in early calendar 2018, according to the company. 

Cal-Maine Foods shares were down 0.7% at $45.42 at the close Friday. The stock has a 52-week high of $50.69 and a 52-week low of $36.65.

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