Cal-Maine Foods Inc. (NASDAQ:CALM) reported fiscal third-quarter 2026 results that beat earnings expectations even as revenue came in below forecasts, reflecting lower egg prices compared with last year’s unusually high levels.
Shares of the company rose 3.92% in pre-market trading after the results were released.
The largest egg producer in the United States posted adjusted earnings per share of $1.06, surpassing the analyst consensus estimate of $0.89 by $0.17. However, net sales totaled $667.0 million, falling short of the $678.22 million forecast and dropping 53.0% year over year from $1.4 billion in the same quarter last year.
The steep decline in revenue largely reflects the comparison with last year’s results, when egg prices surged due to supply disruptions caused by avian flu.
Despite softer pricing conditions, the company continued to advance its strategy of expanding higher-margin products such as specialty eggs and prepared foods.
Sales of specialty eggs represented 50.5% of total shell egg sales, an increase of 2,610 basis points, while prepared foods accounted for 9.5% of net sales, up 870 basis points. Together, these higher-margin segments made up 52.9% of total net sales.
Meanwhile, conventional egg sales dropped 72.1% to $283.2 million, mainly due to a 70.1% decline in selling prices along with a 6.7% drop in sales volume.
Specialty egg sales fell 12.1% to $289.1 million, as prices declined 16.9%, although sales volume rose 5.8%.
Revenue from prepared foods jumped 441.2% to $63.6 million, largely driven by the acquisition of Echo Lake Foods.
“Despite materially lower egg prices compared to the historic levels seen in the prior year, our diversified portfolio and operational execution enabled us to deliver solid results and maintain momentum,” said Sherman Miller, president and chief executive officer.
Gross profit declined 83.3% to $119.3 million, resulting in a gross margin of 17.9%. Operating income dropped 94.3% to $35.9 million, while net income attributable to Cal-Maine Foods decreased 90.1% to $50.5 million.
During the quarter, the company generated $103.6 million in operating cash flow and repurchased 329,830 shares for $24.3 million.
Cal-Maine also announced it will pay a dividend of approximately $0.36 per share on May 14, 2026.