CALM - Why did Cal-Maine stock slump on Thursday? A sign of egg price easing

Cal-Maine Foods ( NASDAQ: CALM ) stock crashed 14.5% on Thursday on earnings miss and signs of pandemic-related supply shortages easing.

Shares of the Mississippi-based company fell over 16% at intraday lows, tumbling not only due to lighter than expected profits in the quarterly report posted in pre-market hours, but based upon signs that shortages may be abating.

“These results reflect the current market environment characterized by record average selling prices for conventional eggs, primarily due to reduced supply related to the outbreak in the U.S. of highly pathogenic avian influenza and good customer demand,” CEO Sherman Miller explained. “There have been no positive tests for HPAI at any of Cal-Maine Foods’ owned or contracted production facilities as of December 28, 2022.”

As the flu-driven shortage looks to be turning into 2023, analysts warned that downside could be ahead. That is especially so as feed costs continue to rise and put pressure on the company.

Read more on the earnings results .

For further details see: