Cal-Maine Stock Tumbles After Earnings. Strong Egg Sales Weren’t Enough.

Cal-Maine Foods posted fiscal first-quarter earnings and revenue that missed analysts’ estimates. (Tim Boyle/Getty Images))

Key Points

• Cal-Maine Foods’ shares fall despite the egg producer reporting its strongest first quarter in company history.
• First-quarter earnings of $4.12 a share miss analysts’ expectations of $5.01.
• Revenue increases 17% to $922.6 million.

Shares of Cal-Maine Foods , the largest egg producer in the U.S., tumbled on Wednesday even after it logged its “strongest first quarter in company history.”

Earnings of $4.12 a share came in below the $5.01 analysts had anticipated, according to FactSet. Although revenue surged 17% to $922.6 million in the fiscal first quarter, it also missed expectations of $960.3 million.

Shares declined 1.4% to $92.75 after falling sharply in premarket trading. The benchmark S&P 500 index was flat.

Cal-Maine cited stronger egg and prepared-food sales in the quarter. Shell egg sales rose 6.5% to $789.4 million. Within the category, conventional egg sales were up 4.4%, and specialty egg sales up more than 10%.

Cal-Maine attributed the rise in sales to consumer trends like growing demand for protein and an increased focus on health and wellness. “On the supply side, the national table-egg flock is recovering from the impacts of Highly Pathogenic Avian Influenza but remains below historical levels,” the company added.

Prepared-food sales spiked 839% to $83.9 million. Cal-Maine noted that Echo Lake-branded breakfast foods contributed $70.5 million in sales in the quarter. The company closed its acquisition of Echo Lake in June.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com