— Shell eggs producer Cal-Maine Foods, Inc. (NASDAQ: CALM) reported its third-quarter 2020 earnings of $0.28 per share versus $0.17 per share expected.
— Net sales decreased by 10% year-over-year to $345.6 million versus $338.08 million expected.
— The results reflected more challenging market conditions than the company experienced for the same period last year.
— The company sold 271.28 million dozen eggs in the third quarter, compared to 271.81 million dozen eggs last year.
— The net average selling price per dozen was $1.236, compared to $1.373 in the third quarter of 2019.
— Specialty dozens sold were also down 7.1%, as sales of specialty dozens were negatively affected by low conventional egg prices. An unfavorable balance of egg supply and demand continued to adversely affect market prices.
— The current ongoing uncertainties and supply chain disruptions related to the Covid-19 outbreak and geopolitical issues surrounding trade agreements and international tariffs could create more price volatility in the future.
— Looking ahead into the fourth quarter of fiscal 2020 and fiscal 2021, the company is taking all reasonable precautions in the management of its operations in response to the outbreak of Covid-19.
— To date, Cal-Maine Foods facilities are operating normally, and the company has not experienced any supply chain or delivery disruptions.