Cal-Maine Foods (NASDAQ: CALM) saw its stock plummet 5.77% in after-hours trading on Tuesday, despite reporting robust third-quarter earnings. The company announced earnings per share of $10.38 on revenue of $1.4 billion, significantly outperforming market expectations.

The sharp decline in share price comes as Cal-Maine revealed several significant developments. The company disclosed its plans to acquire Echo Lake Foods in a deal valued at $258 million, which is expected to be funded with available cash on hand. While the acquisition is anticipated to be accretive to earnings starting in fiscal 2026, investors seem cautious about the short-term impact on the company's financials.

Adding to investor concerns, Cal-Maine reported receiving a civil investigative demand from the Department of Justice in March, related to an investigation into the causes behind nationwide increases in egg prices. Furthermore, the company warned about increased risks to its operations due to the widely reported spread of highly pathogenic avian influenza (HPAI) in dairy cattle. These regulatory and operational challenges appear to have overshadowed the strong quarterly performance, leading to the significant after-hours sell-off.