CALM Cal Maine Foods Inc

Cal-Maine Foods Inc. swung to a loss in the most recent quarter as falling eggs prices sent revenue tumbling.

Still, the loss was much less than anticipated and shares, which have slipped 16% over the past three months, added 0.9% to $44.55 premarket.

Cal-Maine had benefited from higher egg prices for several quarters following a reduction in the number of hens last spring because of an outbreak of avian flu that routed some competitors' flocks. The company has had to spend more on monitoring to guard against its chickens getting the bird flu and on Monday said there have been no positive tests for bird flu at any of its locations.

But Chief Executive Dolph Baker said the outbreak significantly affected egg supplies and prices.

"Our results for the fourth quarter reflect these extremely volatile egg market conditions and supply disruptions," he said. "Market prices for shell eggs have dropped considerably from the historically high levels we experienced at the beginning of this fiscal year."

According to government reports, the laying flock is expected to increase through the end of this year, creating more supply and the potential for further price declines.

In the fiscal fourth quarter, average selling prices skidded 22% from a year ago, and volume fell 4.5%.

Over all, Cal-Maine posted a loss of $376 million, or a penny a share, compared with a profit of $46.1 million, or 95 cent a share, a year ago. Sales plunged 25% to $303 million.

Analysts surveyed by Thomson Reuters had expected a loss of 19 cents a share on $304.3 million in sales.

Specialty eggs continued to make up a larger chunk of Cal-Maine's business, representing 40% of egg sales compared with 28% in the year-earlier period.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

July 18, 2016 10:05 ET (14:05 GMT)

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