Cal-Maine Foods swung to a loss in its fiscal first quarter as sales fell, hurt by continually low egg prices. The egg producer posted a loss of $58.6 million for its quarter ended Aug. 29, compared with a profit of $199.3 million in last year’s comparable period. The quarterly loss came out to $1.26 a share, worse than the 77-cent loss expected by analysts polled by Fact Set.

Net sales fell 42% to $539.6 million, missing Wall Street estimates for $561.6 million. Conventional egg sales decreased 60%, hurt by lower selling prices as sales volumes were roughly flat. Chief Executive Sherman Miller said pricing is under pressure due to an industry-wide supply imbalance, even as underlying demand remains healthy.

Sales of specialty eggs—which include free-range, pasture-raised and other premium varieties—were down 14%, dragged down by lower prices and volumes. Prepared foods sales declined 13%. Specialty eggs and prepared foods accounted for more than half of Cal-Maine’s net sales during the recent quarter, which Miller said underscores progress the company has made in broadening its business. “Looking ahead, there are two important timing dynamics: when the conventional shell egg market begins to rebalance and when our investments in prepared foods translate into greater earnings contribution,” Miller said.

Cal-Maine can’t predict when the conventional shell egg market will rebalance. But with plans to expand its prepared foods capacity more than 60% through the first half of fiscal 2028, he said the company is well positioned to invest through the cycle and build a more diversified and durable earnings profile.