08:54 AM EDT, 04/01/2026 (MT Newswires) -- Cal-Maine Foods ( CALM ) fiscal third-quarter results fell year over year amid lower egg prices, although the company expects earnings to stabilize in the long term.

The egg producer on Wednesday posted net income of $1.06 a share for the three-month period ended Feb. 28, down 90% from a year earlier. The consensus among five analysts on FactSet was for GAAP EPS of $0.70. Sales fell 53% to $667 million, while four FactSet analysts expected $642.5 million.

"Despite materially lower egg prices compared to the historic levels seen in the prior year, our diversified portfolio and operational execution enabled us to deliver solid results and maintain momentum," Chief Executive Sherman Miller said in a statement. "This reinforces the resilience of the model we are building that we expect will lead to more durable normalized earnings power."

The stock rose 4% in the most recent premarket activity.

The company anticipates a "progressive recovery in prepared foods, with volumes rebounding as capacity comes online and utilization improves, supported by steady underlying demand," according to Miller. "These dynamics position the business for more stable, higher-quality earnings over the long term."

Shell egg sales fell 58% to $572.3 million, with conventional eggs and specialty eggs recording declines of 72% and 12%, respectively. Revenue in the prepared foods division surged to $63.6 million from $11.8 million in the prior-year quarter, buoyed by robust volume gains driven by the company's acquisition of Echo Lake Foods.

"We believe the recent decline in wholesale egg prices reflects improved supply following prior-year (Highly Pathogenic Avian Influenza) disruptions," Miller said. "In parallel, more stable purchasing patterns across retail and foodservice have contributed to lower wholesale prices, while retail pricing continues to adjust more gradually."

Gross profit plunged about 83% to $119.3 million, primarily driven by lower shell egg selling prices.