Egg company Cal-Maine Foods (NASDAQ: CALM) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Cal-Maine beat analysts’ revenue expectations by 11.5% last quarter, reporting revenues of $785.9 million, up 71.1% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Cal-Maine a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Cal-Maine’s revenue to grow 43.6% year on year to $751.5 million, a reversal from the 34.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.25 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cal-Maine has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Cal-Maine’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. General Mills delivered year-on-year revenue growth of 2%, beating analysts’ expectations by 1.9%, and Lamb Weston reported a revenue decline of 7.6%, falling short of estimates by 4.3%. General Mills traded down 2.9% following the results while Lamb Weston was also down 20.5%.
Read our full analysis of General Mills’s results here and Lamb Weston’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the consumer staples stocks have shown solid performance, the group has generally underpeformed, with share prices down 5.2% on average over the last month. Cal-Maine is up 5.7% during the same time and is heading into earnings with an average analyst price target of $89 (compared to the current share price of $107.55).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
