Cal-Maine Foods (CALM) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 2027 were $539.6 million, down 41.5% year-over-year, reflecting a challenging conventional shell egg market and lower prices.

• Net loss attributable to shareholders was $58.6 million, compared to net income of $199.3 million in the prior year.

• Specialty shell eggs and prepared foods now represent 54% of net sales, up from 37% in the prior year, highlighting successful diversification.

• Strategic acquisitions and investments, including Echo Lake Foods, Creighton Brothers, Van's Foods, and Eggland's Best franchise, are expanding capacity and market reach.

• Expansion in Eggland's Best franchise territory and ongoing investments in prepared foods capacity are underway.

Financial highlights

• Gross profit dropped to $0.4 million from $311.3 million year-over-year.

• Operating loss was $82.2 million, compared to operating income of $249.2 million in Q1 2026.

• Diluted loss per share was $1.26, versus earnings per share of $4.12 in the prior year.

• Cash and short-term investments stood at $767.6 million at quarter end; company remains virtually debt-free.

• Net cash used in operating activities was $101.4 million, versus $278.6 million provided in the prior year.

Outlook and guidance

• Management expects continued pressure on conventional shell egg pricing and higher input costs until the market rebalances.

• Prepared foods production capacity is projected to increase by over 60% by the first half of fiscal 2028.

• Focus remains on commercialization and utilization of new capacity to drive future earnings.

• No cash dividend will be paid until cumulative profitability is restored; $94.5 million loss must be recovered.

• The company believes current cash, investments, and credit facilities are sufficient for at least the next 12 months.