Cal-Maine Foods posts 1Q loss on lower egg prices

JACKSON, Miss. (AP) — Cal-Maine Foods Inc. said Monday that it lost $3.8 million in its fiscal first quarter, weighed down by declining egg selling prices.

The egg producer said it lost 16 cents per share for the period ended Aug. 28. That compares with a profit of $11.1 million, or 47 cents per share, a year earlier.

Analysts surveyed by Thomson Reuters, whose estimates generally exclude one-time items, forecast earnings of 26 cents per shares.

Chairman and CEO Fred Adams Jr. said the number of eggs sold and produced increased from a year ago, but selling prices slipped. Lower feed costs were unable to offset the declining egg prices.

Adams added that retail demand for eggs continued to be strong, but sales to restaurants and foods service customers were softer.

Sales dropped 9 percent to $187.7 million, down from $206.9 million last year.

Cal-Maine said it does not pay a dividend when it records a quarterly loss.

The Jackson, Miss.-based company shares fell $2.28, or 8.2 percent, to $25.50 in premarket trading.