Cal-Maine Foods swung to a first-quarter loss as egg prices fell sharply, cutting revenue 41.5% to $539.6 million from $922.6 million a year earlier.
Net income turned into a loss of $58.6 million, compared with profit of $199.3 million in the prior-year quarter. Diluted earnings per share fell to a loss of $1.26 from earnings of $4.12.
Gross profit dropped to $403,000 from $311.3 million. Operating results moved to a loss of $82.2 million from operating income of $249.2 million.
The biggest hit came from conventional shell eggs. Sales in that segment plunged to $201.7 million from $498.4 million, as average prices fell 59.3% while volume was nearly flat, down 0.7%. The segment posted a loss of $71.0 million, versus income of $168.2 million a year ago.
Specialty shell egg sales declined to $236.9 million from $275.6 million. Average selling price fell 10.7% and volume slipped 3.8%. Segment income dropped to $14.9 million from $64.2 million.
Prepared foods sales fell to $63.0 million from $72.4 million, as pounds sold decreased 19.3%, partly offset by a 7.9% increase in average selling price. Segment income declined to $7.8 million from $13.2 million.
In the quarter, prepared foods accounted for 11.7% of net sales, up from 7.8% a year earlier. Specialty shell eggs and prepared foods together made up 54.1% of net sales, compared with 37.1% in the prior-year quarter.
Cal-Maine repurchased 66,601 shares for $5.0 million during the quarter. After the quarter ended, it bought back another 204,888 shares for $14.9 million. The company said $315.7 million remained available under its $500 million repurchase authorization at quarter-end.
The company did not declare a cash dividend for the quarter. The cumulative loss that must be recovered before a future dividend can be paid was $94.5 million at August 29, 2026. As a result of these announcements, the company's shares have moved 1.77% on the market, and are now trading at a price of $68.55. If you want to know more, read the company's complete 8-K report here.
