Shares of Cal-Maine Foods (CALM), the largest egg producer in the United States, plummeted 8.11% in pre-market trading on Wednesday following a series of developments that have rattled investor confidence. The company's fiscal third-quarter results, released after market close on Tuesday, fell short of analyst expectations, while revelations of a Department of Justice (DOJ) investigation and a significant acquisition announcement added to investor concerns.

Cal-Maine reported earnings per share of $10.38 for the quarter ended March 1, missing the analyst consensus estimate of $10.91. Despite revenue doubling to $1.42 billion, it still fell short of the $1.43 billion forecast. The company attributed the revenue increase primarily to higher egg prices, which averaged $4.06 per dozen during the quarter, up from $2.25 a year ago.

Adding to the pressure, Cal-Maine disclosed that it received a civil investigative demand from the DOJ in March, related to an investigation into the causes behind nationwide increases in egg prices. The company stated it is cooperating with the probe, which investors fear could lead to potential regulatory challenges. Furthermore, Cal-Maine announced plans to acquire Echo Lake Foods for $258 million, a move aimed at expanding into the ready-to-eat egg product segment. While potentially beneficial in the long term, the acquisition's short-term impact on finances may be contributing to investor caution. Lastly, the company warned about increased risks to its operations due to the spread of highly pathogenic avian influenza (HPAI) in dairy cattle, raising concerns about potential supply disruptions.