Egg company Cal-Maine Foods (NASDAQ: CALM) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 72.2% year on year to $1.10 billion. Its GAAP profit of $7.04 per share was 12.1% above analysts’ consensus estimates.

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Company Overview

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years.

With $4.26 billion in revenue over the past 12 months, Cal-Maine carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.

As you can see below, Cal-Maine grew its sales at an incredible 33.9% compounded annual growth rate over the last three years. This is a great starting point for our analysis because it shows Cal-Maine’s demand was higher than many consumer staples companies.

This quarter, Cal-Maine reported magnificent year-on-year revenue growth of 72.2%, and its $1.10 billion of revenue beat Wall Street’s estimates by 21.3%.

Looking ahead, sell-side analysts expect revenue to decline by 14.4% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and implies its products will face some demand challenges. At least the company is tracking well in other measures of financial health.

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Cash Is King

Although earnings are undoubtedly valuable for assessing company performance, we believe cash is king because you can’t use accounting profits to pay the bills.

Cal-Maine has shown terrific cash profitability, driven by its lucrative business model that enables it to reinvest, return capital to investors, and stay ahead of the competition. The company’s free cash flow margin was among the best in the consumer staples sector, averaging 18.2% over the last two years.

Key Takeaways from Cal-Maine’s Q2 Results

We were impressed by how significantly Cal-Maine blew past analysts’ revenue expectations this quarter. We were also happy its EPS outperformed Wall Street’s estimates. On the other hand, its gross margin missed. Zooming out, we think this was a solid print. The stock traded up 3.9% to $109 immediately following the results.

Cal-Maine may have had a good quarter, but does that mean you should invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.