Cal-Maine Foods Inc. (NASDAQ:CALM) shares fell 1.54% in premarket trading on Thursday after the egg producer reported a wider-than-expected adjusted loss and revenue below analyst estimates for its fiscal first quarter.
For the quarter ended August 29, 2026, Cal-Maine reported an adjusted loss of $1.26 per share, compared with the analyst consensus estimate for a loss of $0.47 per share.
Revenue declined 41.5% year on year to $539.61 million from $922.60 million, below the analyst estimate of $587.8 million.
The company recorded a net loss of $58.62 million, compared with net income of $199.34 million in the same period a year earlier.
Conventional Shell Egg Sales Decline
Cal-Maine attributed the revenue decline to an industry supply imbalance following the repopulation of layer flocks during fiscal 2026.
Conventional Shell Eggs sales fell 59.5%, primarily reflecting a 59.3% decline in the average selling price per dozen, while volumes were relatively unchanged.
Specialty Shell Eggs sales decreased 14.0%, while Prepared Foods sales declined 13.0%.
“Our first-quarter results reflect both the current point in the conventional shell egg cycle and the continued evolution of Cal-Maine Foods’ earnings model,” said Sherman Miller, president and chief executive officer. “Conventional Shell Egg pricing remains under pressure from an industry supply imbalance, while underlying demand remains healthy.”
Specialty Shell Eggs and Prepared Foods represented 54.1% of total net sales during the quarter, up from 37.1% in the prior-year period. Prepared Foods accounted for 11.7% of net sales, compared with 7.8% a year earlier.
Cal-Maine Withholds First-Quarter Dividend
Cal-Maine repurchased 66,601 shares for $5.0 million during the quarter.
The company said it will not pay a dividend for the first quarter, in accordance with its variable dividend policy. As of August 29, the cumulative loss that must be recovered before any future dividend payment stood at $94.5 million.
Cal-Maine is also progressing production capacity expansion projects that it expects will increase Prepared Foods production capacity by more than 60% by the first half of fiscal 2028 compared with capacity at the end of fiscal 2026.