Cal-Maine (CALM) Reports Q1: Everything You Need To Know Ahead Of Earnings

Petr Huřťák /
2024/04/01 3:00 am EDT

Egg company Cal-Maine Foods (NASDAQ:CALM) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter Cal-Maine reported revenues of $523.2 million, down 34.7% year on year, missing analyst expectations by 0.4%. It was a weak quarter for the company. Although Cal-Maine's sales volumes increased, the average selling price for a dozen of its conventional eggs plummeted from $2.88 in the same quarter last year to $1.46 (49% year-on-year drop). This significant headwind caused the company to miss analysts' gross margin, operating margin, and EPS estimates.

Is Cal-Maine buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Cal-Maine's revenue to decline 30.6% year on year to $692.4 million, a further deceleration on the 109% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.88 per share.

Cal-Maine Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 2 upwards revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Cal-Maine's peers in the consumer staples segment, only General Mills has so far reported results, with revenues decreasing 0.5% year on year, and beating analyst estimates by 2.7%. The stock traded up 2.9% on the results.

Read our full analysis of General Mills's earnings results here.

There has been positive sentiment among investors in the consumer staples segment, with the stocks up on average 3.4% over the last month. Cal-Maine is up 4.8% during the same time, and is heading into the earnings with analyst price target of $57.3, compared to share price of $59.4.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.