Cal-Maine Foods reported fourth quarter net sales of $552.6 million, down 49.9% from the prior year, and a diluted loss per share of ($0.76). The significant year-over-year decline was attributed to an industry-wide oversupply of eggs that drove wholesale shell egg prices to historically low inflation-adjusted levels, contrasting sharply with the record-high prices of the prior fiscal year.
Key Highlights
- Fourth quarter revenue of $552.6 million and EPS of ($0.76) widely missed consensus estimates of $606.0 million and $0.42, respectively.
- The Conventional Shell Eggs segment was the primary driver of the loss, with average selling prices declining 70.9% year-over-year, leading to a segment operating margin of (19.3)%
- In a sign of strategic progress, the combined Specialty Shell Eggs and Prepared Foods segments grew to represent 53.0% of fourth quarter net sales. The company announced a new $54 million investment to expand its Prepared Foods production capacity.