Cal-Maine Foods Q1 revenue misses as conventional egg prices tumble

By Reuters News


Overview

  • U.S. egg producer's Q1 revenue fell 41%, missing analyst expectations

  • Q1 loss per share missed analyst expectations as conventional egg prices dropped sharply

  • Company repurchased $5 mln in shares and will not pay a dividend for Q1


Outlook

  • Company expects over 60% growth in Prepared Foods capacity by H1 fiscal 2028

  • Cal-Maine Foods says timing of conventional shell egg market rebalance remains uncertain

  • Company sees continued opportunities in Specialty Shell Eggs segment


Result Drivers

  • CONVENTIONAL EGG PRICES - Co said conventional shell egg prices fell sharply due to industry supply imbalance after flock repopulation

  • SPECIALTY SEGMENT PRESSURE - Specialty Shell Eggs sales declined due to lower selling prices and higher feed and production costs

  • PREPARED FOODS PRODUCTION REDUCTIONS - Prepared Foods sales fell as temporary production reductions during capacity expansion lowered volumes


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Miss

$539.61 mln

$561.56 mln (4 Analysts)

Q1 Loss Per Share

Miss

$1.26

$0.77 (4 Analysts)

Q1 Net Loss

Miss

$58.62 mln

$35.41 mln (3 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the fishing & farming peer group is "buy."

  • Wall Street's median 12-month price target for Cal-Maine Foods, Inc. is $80.00, about 16.7% above its September 29 closing price of $68.55

  • The stock recently traded at 52 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • Sept 28 - China to cut tariffs on US farm goods, but list excludes soybeans

  • Sept 28 - Rain came too late to rescue EU summer crop yields, MARS says


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.