Cal-Maine Foods (NASDAQ:CALM) experienced a sharp decline in its second-quarter profits, leading to a 6% fall in its shares during pre-market trading.
The company reported earnings of 35 cents per share for the quarter, which was notably below the anticipated 73 cents and a substantial decrease from the $4.07 reported in the same period last year.
Cal-Maine’s net sales also saw a decline, dropping 35% year-over-year to $523.2 million. This figure, however, marginally surpassed the forecasted $513.25 million.
Despite the overall decrease in sales revenue, Cal-Maine observed a small increase in sales volumes. The company sold 288.2 million dozen eggs, which is a 1.4% rise from the previous year.
On the other hand, the net average selling price per dozen eggs saw a significant drop of 36% compared to the previous year, landing at $1.730. The decline in sales revenue was primarily attributed to the considerable reduction in the net average selling price for conventional eggs.