Cal-Maine Foods (CALM) - Get Report shares dropped sharply on Monday after the egg producer swung to a wider-than-expected fiscal first-quarter loss from a year-earlier profit on 29% lower sales.

The shares were trading off 11% to $40.58. They traded on Monday as low as $39.25, down almost 14%, which Bloomberg shows was the biggest one-day drop for Cal-Maine in 11 years.

For the quarter ended Aug. 31, the Jackson, Miss., company posted a loss of 94 cents a share against a profit of 26 cents in the year-earlier quarter. Sales dropped to $241.2 million from $340.6 million. 

A survey of analysts by FactSet produced consensus estimates of a loss of 85 cents on revenue of $254.5 million.

Egg prices in the latest quarter showed an "extreme" drop, reflecting an oversupply of eggs that started to affect the market early in calendar 2018, Chairman and Chief executive Dolph Baker said in a statement.

"This trend has continued as the most recent U.S. Department of Agriculture Chickens and Eggs Report showed 331.4 million laying hens as of Sept. 1," or about 800,000 more hens than a year earlier, Baker said.

Cal-Maine is taking actions including keeping costs in line and adjusting product mix. In particular, the company said, because of changes in California law and other factors, it is expecting, and is expanding capacity for, stronger demand for cage-free eggs.

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