Cal-Maine shares slide after egg giant acknowledges DOJ probe into sky-high prices

Core Viewpoint - Cal-Maine Foods, the largest US egg producer, is under investigation by the Justice Department for potential antitrust violations related to egg price increases, leading to a decline in its stock price by over 4% in after-hours trading [1]. Company Performance - Cal-Maine reported nearly doubled sales of $1.42 billion in its fiscal third quarter ending March 1, primarily driven by higher egg prices, which averaged $4.06 per dozen, up from $2.25 per dozen a year ago [4][7]. - The company sold a record 331.4 million dozen eggs in the third quarter, marking a 10% increase from the same period last year [6]. - Despite the significant increase in sales, Cal-Maine's revenue fell short of Wall Street's forecast of $1.43 billion [4]. Financial Metrics - The net income for Cal-Maine in the third quarter more than tripled to $508.5 million compared to the same period last year, translating to a profit of $10.38 per share, which was below analysts' expectations of $10.72 per share [7]. Industry Context - Egg prices have reached record highs, with one dozen Grade A eggs averaging $5.90 in February, a 10.4% increase from the previous year, surpassing January's record of $4.95 [3]. - The surge in egg prices is largely attributed to a bird flu epidemic that has resulted in the culling of over 166 million birds, primarily egg-laying chickens [3][5].