Cal-Maine cooperating with DOJ probe into sky-high – Business News
Shares of Cal-Maine Foods, the largest US egg producer, fell in after-hours trading Tuesday after the company acknowledged it’s being investigated by the antitrust division of the Justice Department.
Ridgeland, Miss.-based Cal-Maine mentioned it acquired discover of the investigation into egg price will increase final month. Cal-Maine mentioned it’s cooperating with the investigation.
The company’s shares fell more than 4% in after-hours trading.
Egg costs have hit report highs in latest months, largely resulting from a fowl flu epidemic. AP
Egg costs have hit report highs in latest months, largely resulting from a fowl flu epidemic that has pressured farmers to slaughter more than 166 million birds, principally egg-laying chickens.
One dozen Grade A eggs value an average of $5.90 in US cities in February, up 10.4% from a yr in the past. That eclipsed January’s record-high price of $4.95.
The egg price will increase have put Cal-Maine, which offers round 20% of the nation’s eggs, underneath elevated scrutiny.
On Tuesday, Cal-Maine mentioned its gross sales almost doubled to $1.42 billion in its fiscal third quarter, which ended March 1. The company mentioned that was primarily resulting from greater egg costs, which averaged $4.06 per dozen during the quarter, up from $2.25 per dozen a yr in the past.
Cal-Maine’s gross sales fell short of Wall Street’s forecast of $1.43 billion, in response to analysts polled by FactSet.
On Tuesday, Cal-Maine mentioned its gross sales almost doubled to $1.42 billion in its fiscal third quarter, which ended March 1. Getty Images
Cal-Maine mentioned it offered a report 331.4 million dozen-eggs within the third quarter, a 10% increase from the identical period a yr in the past.
Cal-Maine mentioned it made progress on mitigating the results of fowl flu, together with growing the quantity of layer hens and chicks hatched and recovering from the flu-related closure of amenities in Texas and Kansas. The company mentioned its feed prices had been additionally down during the quarter.
Cal-Maine mentioned its third quarter internet income more than tripled to $508.5 million in comparison with the identical period a yr in the past. The revenue, of $10.38 per share, additionally fell short of analysts’ forecast of a $10.72 per-share revenue.
