Major benchmarks gained ground on Monday, finishing the third quarter on an optimistic note. Investors have gotten whipsawed on various news items coming out of Washington, and today's more positive tone in trade relations with China improved market sentiment. Yet there were still some big challenges that some companies faced, pulling their share prices down. Cal-Maine Foods (NASDAQ: CALM), G1 Therapeutics (NASDAQ: GTHX), and Teekay LNG Partners (NYSE: TGP) were among the worst performers. Here's why they did so poorly.
Shares of Cal-Maine Foods fell 12% after the egg producer reported its fiscal first-quarter results. The company said revenue was down 29% and that it reversed a year-earlier profit with a significant loss. A glut of eggs in the overall industry reduced prices by more than 40% in the Southeastern U.S. compared to where they were 12 months ago, and a slight gain in sales volume wasn't nearly enough to make up for that downward pressure. Specialty egg products will continue to play a key role in driving Cal-Maine's growth because they're less sensitive to commodity pricing pressures, but investors will have to deal with getting no dividend under the company's variable-dividend policy until Cal-Maine becomes profitable again.
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