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Investors Punish Cal-Marine Foods For Delivering Higher Than Expected Q1 Loss

CALM

Cal-Marine Foods, Inc. (NASDAQ: CALM) reported a higher than estimated loss for the first quarter.

The shell eggs producer suffered a net loss of $30.9 million, or a loss of $0.64 a share, for the first quarter. In comparison, the company earned a profit of $143.0 million, or $2.97 a share, in the year-ago quarter. Street estimated a loss of $0.33 a share.

Cal-Marine Foods' net sales plunged 60.7 percent from $609.9 million to $239.8 million and came in below analysts' expectations of $274.57 million.

Chairman, President and CEO, Dolph Baker, commented, "We experienced higher farm production costs primarily due to ongoing capital improvement and conversion projects. Our feed costs per dozen produced were marginally higher compared with a year ago, with adequate supplies of grain from last fall. The USDA reports indicate another plentiful harvest for both corn and soybean crops this year, which should result in lower grain prices for fiscal 2017."

Following the results, the stock shed $3.17, or 7.52 percent, to $39.00 in pre-market trading on Monday.



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