Egg seller Cal-Maine’s stock falls after inflation data showing big drop in egg prices

Shares of Cal-Maine Foods Inc.
CALM,
+0.25%
slipped 0.2% in morning trading Tuesday, to put them in danger of snapping a four-day win streak, after the government’s May inflation data showed the index for egg prices falling 13.8%, the largest drop since January 1951. The company, which claims to be the largest producer of fresh shell eggs in the U.S., reported in late-March profit and revenue for the quarter to Feb. 25 that rose well above expectations, citing “significantly higher market prices” for eggs. The company said in its fiscal third-quarter earnings report that the net average selling price per dozen for conventional eggs more than doubled from a year ago, to $3.678 from $1.458. The company isn’t expected to report fourth-quarter results until mid-July. Cal-Maine’s stock has lost 9.1% year to date, while the S&P 500
SPX,
+0.48%
has advanced 13.6%.