Cal-Maine Foods (NASDAQ:CALM) shares dropped more than 12% after-hours following the company’s reported Q1 results, with EPS of $0.02 coming in worse than the consensus estimate of $0.33.
Revenue fell 30% year-over-year to $459.3 million, missing the consensus estimate of $473.37M, primarily due to the decrease in the net average selling price for conventional eggs, partially offset by the increase in the net average selling price for specialty eggs.
“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 (“HPAI”) 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,” said CEO Sherman Miller.
Miller also expressed optimism about the opportunities for Cal-Maine Foods in fiscal 2024, despite ongoing challenges related to the threat of HPAI and inflationary pressures. The company intends to focus on managing the aspects of its business that are within its control.