MW Cal-Maine's stock falls as results fall short, with egg producer citing DOJ investigation

By Bill Peters

The Justice Department is in the early phases of investigating large egg producers and their pricing practices, according to reports

Shares of Cal-Maine Foods Inc. fell after hours on Tuesday after the egg producer reported fiscal third-quarter results that missed Wall Street's estimates, following a spike in egg prices over recent months that had catapulted its profits higher.

The company (CALM) also said it received a "civil investigative demand" related to a Justice Department investigation into the causes of the rise in U.S. egg prices. Cal-Maine said it was cooperating with the inquiry.

The Justice Department is in the early phases of investigating large egg producers, with a focus on their pricing practices, according to reports last month.

Cal-Maine earned $10.38 a share during its fiscal third quarter, which ended on March 1. Sales more than doubled to $1.42 billion.

However, those results were short of Wall Street's estimates. Analysts polled by FactSet expected Cal-Maine to earn $10.72 a share for its fiscal third quarter on $1.43 billion in sales, a huge jump from levels seen in the prior two years.

Shares fell 4.2% after hours on Tuesday. As of the day's close, the stock is still up nearly 45% over the past 12 months.

After an avian-flu outbreak caused a surge in egg prices, those prices have dipped in recent weeks as more consumers steer clear of buying eggs and farmers work to contain cases. However, Wall Street still expects a surge in profits for Cal-Maine this fiscal year, which for the company runs through May.

-Bill Peters

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April 08, 2025 16:45 ET (20:45 GMT)

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