By Kelly Cloonan
Shares of Cal-Maine Foods fell despite higher third-quarter revenue and profit after the company said it is cooperating with a Justice Department probe high into egg prices.
The stock fell 3.9% to $86.81 on Tuesday in after-hours trading. Shares had gained 44% over the past 12 months through market close on Tuesday.
The egg maker said Tuesday it is cooperating with a Justice Department investigation about the cause of soaring egg prices, including whether large producers have conspired to raise costs or withhold supply.
The company also said Tuesday it is acquiring Echo Lake Foods, a Vermont-based maker of ready-to-eat egg products and breakfast foods, for $258 million. Cal-Maine says the transaction, expected to close by the end of fiscal 2025, will help it expand into a growing portion of the egg category.
The stock's decline comes despite higher revenue and profit in the company's fiscal third quarter.
Cal-Maine said Tuesday revenue doubled to $1.42 billion in the quarter ended March 1, driven primarily by an increase in the net average selling price of eggs.
Profit was $508.5 million, or $10.38 a share, up from $146.4 million, or $3.00 a share, a year earlier.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
April 08, 2025 18:20 ET (22:20 GMT)
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