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Cal-Maine Meals (NASDAQ:CALM) inventory crashed 14.5% on Thursday on earnings miss and indicators of pandemic-related provide shortages easing.
Shares of the Mississippi-based firm fell over 16% at intraday lows, tumbling not solely as a result of lighter than anticipated income within the quarterly report posted in pre-market hours, however primarily based upon indicators that shortages could also be abating.
“These outcomes mirror the present market setting characterised by file common promoting costs for standard eggs, primarily as a result of lowered provide associated to the outbreak within the U.S. of extremely pathogenic avian influenza and good buyer demand,” CEO Sherman Miller defined. “There have been no constructive assessments for HPAI at any of Cal-Maine Meals’ owned or contracted manufacturing amenities as of December 28, 2022.”
Because the flu-driven scarcity appears to be like to be turning into 2023, analysts warned that draw back might be forward. That’s particularly in order feed prices proceed to rise and put stress on the corporate.
Learn extra on the earnings outcomes.
