CALM Stock Plunged: Here's What Happened

The Situation

Cal-Maine Foods Inc (NASDAQ: CALM) shares – a fresh egg producer selling mostly in the mid-Atlantic, southwest, east-west, and midwest states – plunged on Thursday after the company reported Q2 profits that missed estimates. As of 1:50 PM ET, Cal-Maine shares dropped by 13.79%.

The Explanation

Cal-Maine Foods Inc officially announced its Q2 profit of $198.6 million, or $4.07 per share, up from its $1.2 million, or $0.02 per share in Q2 of 2021. This fell short of analysts' estimates at $4.24 per share.

The company announced a 110% increase in net sales compared to the same time last year at $801.7 million. This was driven by the average conventional selling price for eggs, which allowed the company to achieve a quarterly gross profit margin of 39.6%.

See the $CALM chart performance here.

The Effect

Cal-Maine Foods Inc stock reportedly dropped as the company missed analysts' expectations for profits per share. The investors reaction happened despite the company showing great growth compared to the same quarter year-over-year. Since investors can't know for sure whether the company will hit the next analysts' estimates, it is more important to focus on Cal-Maine Foods Inc's business.

See full $CALM flow at: https://unusualwhales.com/stock/CALM/flow-overview