Why Cal-Maine Foods Shares Were Volatile Today
Cal-Maine Foods (NASDAQ: CALM), the nation's largest egg producer, missed on earnings but announced an agreement to acquire breakfast food manufacturer Echo Lake Foods. Investors weren't sure what to make of it all. In a volatile day for broader markets, shares of Cal-Maine fell 8% at the open, soared as high as up 6% mid-day, and were up about 3% heading into the close.
Egg prices have been in the news due to the impact of bird flu, but Cal-Maine is trying its best to remain focused on business as usual. The company earned $10.38 per share in its fiscal third quarter ending March 1, up from $3 per share a year prior but below the $10.90 per share Wall Street had expected.
Similarly, Cal-Maine's $1.42 billion in quarterly sales was up 102% year over year but $10 million short of expectations. CEO Sherman Miller spoke of persistent "dynamic market conditions" but said "the entire Cal-Maine Foods team did an outstanding job in maximizing production through a period of high demand, while operating safely and maintaining diligence on biosecurity measures."
Source Fool.com
