Shares of Cal-Maine Meals, the biggest US egg producer, fell in after-hours buying and selling Tuesday after the corporate acknowledged it’s being investigated by the antitrust division of the Justice Division.
Ridgeland, Miss.-based Cal-Maine stated it acquired discover of the investigation into egg value will increase final month. Cal-Maine stated it’s cooperating with the investigation.
The corporate’s shares fell greater than 4% in after-hours buying and selling.
Egg costs have hit report highs in latest months, largely resulting from a chook flu epidemic that has pressured farmers to slaughter greater than 166 million birds, principally egg-laying chickens.
One dozen Grade A eggs price a mean of $5.90 in US cities in February, up 10.4% from a yr in the past. That eclipsed January’s record-high value of $4.95.
The egg value will increase have put Cal-Maine, which offers round 20% of the nation’s eggs, below elevated scrutiny.
On Tuesday, Cal-Maine stated its gross sales practically doubled to $1.42 billion in its fiscal third quarter, which ended March 1. The corporate stated that was primarily resulting from larger egg costs, which averaged $4.06 per dozen throughout the quarter, up from $2.25 per dozen a yr in the past.
Cal-Maine’s gross sales fell in need of Wall Avenue’s forecast of $1.43 billion, in line with analysts polled by FactSet.
Cal-Maine stated it offered a report 331.4 million dozen-eggs within the third quarter, a ten% improve from the identical interval a yr in the past.
Cal-Maine stated it made progress on mitigating the results of chook flu, together with growing the variety of layer hens and chicks hatched and recovering from the flu-related closure of services in Texas and Kansas. The corporate stated its feed prices have been additionally down throughout the quarter.
Cal-Maine stated its third quarter internet revenue greater than tripled to $508.5 million in comparison with the identical interval a yr in the past. The revenue, of $10.38 per share, additionally fell in need of analysts’ forecast of a $10.72 per-share revenue.
