For many years, Cal-Maine Foods have pursued a growth strategy focused on the acquisition of existing shell egg production and processing facilities, as well as the construction of new and more efficient facilities. The company continues to upgrade, modify, and invest its facilities to meet the changing demand of cage-free eggs over the next several years.
Analysts expect the company to report a loss of $0.89 per share on revenue of $254.52 million for the first quarter. In comparison, during the previous year quarter, Cal-Maine Foods posted a profit of $0.26 per share on revenue of $340.58 million. The company has surprised investors by beating analysts’ expectations twice in the past four quarters.
For the fourth quarter, Cal-Maine Foods slipped to a loss from a profit last year, due to more challenging market conditions. The unfavorable supply and demand balance and anticipated future egg supply growth trends have continued to affect market prices and the company’s business. Net sales decreased by 37% year-over-year.
Looking ahead, the egg producer expects its feed costs to be more volatile and potentially higher in fiscal 2020. The grain prices are expected to be hurt by reduced exports due to the ongoing uncertainties and geopolitical issues surrounding trade agreements and international tariffs.