Shares of Cal-Maine (Nasdaq: CALM) dropped 7.05% in after-hours trading on Tuesday after the fresh egg producer posted disappointing earnings.
Financials: Cal-Maine reported that net sales reached $390 million, which was better than expected. But the company's earnings per share of $0.02 was lower than most expectations.
The Good: Demand was strong in the quarter and net sales increased 12.5% year-over-year.
The Bad: Net income only reached $1.2 million, which was way behind the $12.2 million that the company achieved in the same quarter last year. Cal-Maine cited inflationary headwinds and higher feed costs as two challenges.
Final Thoughts: Despite some economic headwinds, shares of Cal-Maine are still positive for the year. Can the company overcome these economic issues in 2022?