Cal-Maine reported a fiscal first-quarter loss of $58.6 million for the quarter ended August 29, compared with a profit of $199.3 million a year earlier. According to Sina Finance, net sales fell 42% to $539.6 million, below Wall Street expectations of $561.6 million.

The company said earnings per share came in at a loss of $1.26, wider than the $0.77 loss expected by analysts surveyed by FactSet. Ordinary egg sales were broadly unchanged in volume, but revenue dropped 60% as prices remained weak.

Chief Executive Sherman Miller said underlying demand remained solid, but an industry-wide supply imbalance continued to pressure pricing. In premarket trading, Cal-Maine shares fell 6.6% to $64.

Specialty eggs, including cage-free, pasture-raised and other premium categories, saw revenue decline 14% on both price and volume pressure, while prepared foods revenue fell 13%. Together, the two businesses accounted for more than half of Cal-Maine's net sales in the quarter.

Miller said the company plans to expand prepared foods capacity by more than 60% by the first half of fiscal 2028.