Overview

• U.S. egg producer's Q4 revenue fell nearly 50% yr/yr, missing analyst expectations

• Q4 adjusted EPS and net income both negative and missed analyst expectations

• Company attributes weak results to industry oversupply and historically low egg prices

Outlook

• Company expects improving supply-demand balance to support stronger egg pricing in coming months

• Expansion of Eggland’s Best franchise territory expected to boost Specialty Shell Egg volume by about 5% annually

• Prepared Foods production capacity projected to rise over 60% from end of fiscal 2026 to first half of fiscal 2028

Result Drivers

• EGG PRICE DECLINE - Co said industry oversupply drove wholesale shell egg prices to historically low inflation-adjusted levels, significantly reducing revenue and margins

• CONVENTIONAL EGG PRICING - Average selling price per dozen for conventional shell eggs fell 70.9% in Q4, with volume up 3.1%, indicating lower results were driven by pricing, not demand

• PREPARED FOODS PERFORMANCE - Improved utilization and fixed-cost absorption from network optimization and expansion initiatives led to stronger operating performance and sequential margin improvement in prepared foods

Company press release: ID:nGNX3LMY1N

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Miss	$552.58 mln	$563.83 mln (4 Analysts)
Q4 EPS	Miss	-$0.76	$0.08 (4 Analysts)
Q4 Net Income	Miss	-$35.88 mln	$3.83 mln (3 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the fishing & farming peer group is "buy."

• Wall Street's median 12-month price target for Cal-Maine Foods Inc is $80.13, about 8.2% below its July 21 closing price of $87.25

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

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• July 21 - Global caterers ride first-time outsourcing wave as food prices rise

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