Cal-Maine Foods (NASDAQ:CALM) revealed an unexpected 5.6% decline in its fiscal second-quarter net income on Monday, sparking a 4% decline in the egg producer's stock.
The Jackson, Miss.-based company said it earned $15.2 million, or 63 cents a share, in the quarter ended Nov. 27, compared with a profit of $16.1 million, or 67 cents a share, a year earlier. Analysts had called for EPS of 72 cents.
Continue Reading Below
Revenue advanced 2.3% to $234.5 million. Gross margins declined from 20.4% to 19.3%.Cal-Maine was hurt by higher feed costs, which rose four cents per dozen eggs produced compared with the year-earlier period.
"We reported improved sales from a year ago due to higher average selling prices; however, our profitability was affected by higher feed costs," CEO Dolph Baker said in a statement.
Shareholders punished the stock for the EPS miss, sending it 4.49% lower to $32.30. Coming into the week, Cal-Maine had been mostly flat this year, declining 0.76%.