06:40 AM EDT, 04/09/2025 (MT Newswires) -- Cal-Maine Foods ( CALM ) shares dropped early Wednesday as the company said it's under an antitrust investigation linked to nationwide increases in egg prices, while its fiscal third-quarter results rose year over year amid strong demand for shell eggs and higher prices.

In a late Tuesday filing with the Securities and Exchange Commission, Cal-Maine confirmed it received a civil investigative demand last month from the Department of Justice related to alleged anticompetitive actions by and among egg producers. The company said it's cooperating with the probe and is unable to determine the amount of potential losses that may occur from an outcome.

"Alongside our own efforts to address the current supply situation, we greatly appreciate the current administration's recently announced plan to address the volatility in our vital industry," Chief Executive Sherman Miller said in an earnings statement. "It is clear the administration recognizes the importance of eggs as a low-cost, high-value, unprocessed protein."

Cal-Maine's stock fell 4.8% in the most recent premarket activity.

The company's net income jumped to $10.38 per share for the three-month period ended March 1 from $3 a year earlier. The consensus among three analysts on FactSet was for GAAP EPS of $10.72. Sales advanced to $1.42 billion from $703.1 million last year, aided by an increase in the net average selling price for shell eggs and higher volumes, while two FactSet analysts expected $1.43 billion.

"Dynamic market conditions and (highly pathogenic avian influenza)-related supply shortages persisted this quarter," according to Miller. "However, the entire Cal-Maine Foods ( CALM ) team did an outstanding job in maximizing production through a period of high demand, while operating safely and maintaining diligence on biosecurity measures."

The company sold 331.4 million dozen shell eggs in the quarter, up from 300.8 million in the prior-year quarter. Production inclined to 293.1 million dozen eggs from 259.5 million. The net average selling price for a dozen eggs moved up to $4.06 from $2.25 last year, while the price for specialty eggs grew to $2.78 from $2.42.

Cal-Maine also agreed to acquire Echo Lake Foods for about $258 million. The deal, which requires approval from regulators, is expected to be completed by the end of fiscal 2025. The company estimates the acquisition to be accretive to its earnings by at least mid-single-digits beginning in fiscal 2026.