Cal-Maine Foods Inc. (NASDAQ: CALM) reported fiscal third-quarter 2026 results that exceeded earnings expectations but fell short on revenue, as declining egg prices weighed on performance. Shares dropped more than 5% intraday Thursday.
The company posted adjusted earnings per share of $1.06, surpassing the analyst consensus of $0.89 by $0.17. However, net sales totaled $667.0 million, missing the $678.22 million estimate and declining 53.0% from $1.4 billion in the same period last year.
The year-over-year decline was largely attributed to significantly lower egg prices compared with the prior-year period, when avian flu-related supply disruptions had driven prices to elevated levels.
Cal-Maine’s strategic shift toward higher-margin categories showed continued progress. Specialty eggs accounted for 50.5% of total shell egg sales, an increase of 2,610 basis points, while prepared foods represented 9.5% of net sales, up 870 basis points. Combined, these categories made up 52.9% of total net sales.
Conventional egg sales declined sharply by 72.1% to $283.2 million, reflecting a 70.1% drop in selling prices and a 6.7% decline in volume. Specialty egg sales decreased 12.1% to $289.1 million, as a 16.9% decline in prices outweighed a 5.8% increase in volume. Meanwhile, prepared foods revenue surged 441.2% to $63.6 million, primarily driven by the acquisition of Echo Lake Foods.
Profitability metrics also weakened significantly. Gross profit fell 83.3% to $119.3 million, with gross margin at 17.9%. Operating income declined 94.3% to $35.9 million, while net income attributable to the company dropped 90.1% to $50.5 million.
