Cal-Maine’s fourth quarter was marked by a negative market reaction, with sales coming in below Wall Street’s expectations. Management highlighted that the year-on-year comparison was difficult due to last year’s supply disruptions and unusually high egg prices. CEO Sherman Miller cited the company’s portfolio shift toward specialty eggs and prepared foods as key factors that helped cushion the impact of declining conventional egg prices. He described the company as “a fundamentally different company than the last time we experienced similar market conditions,” referencing a stronger balance sheet, greater diversification, and reduced reliance on commodity pricing.
Is now the time to buy CALM? Find out in our full research report (it’s free for active Edge members).
Cal-Maine (CALM) Q4 CY2025 Highlights:
- Revenue: $769.5 million vs analyst estimates of $794.6 million (19.4% year-on-year decline, 3.2% miss)
- Adjusted EPS: $2.14 vs analyst estimates of $2.01 (6.9% beat)
- Adjusted EBITDA: $154 million vs analyst estimates of $142.8 million (20% margin, 7.8% beat)
- Operating Margin: 16.2%, down from 29.2% in the same quarter last year
- Market Capitalization: $3.45 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Cal-Maine’s Q4 Earnings Call
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Heather Jones (Heather Jones Research) asked how Cal-Maine’s portfolio shift and hybrid pricing impact earnings stability in weak egg markets. CEO Sherman Miller explained that specialty eggs, prepared foods, and hybrid pricing models now underpin more resilient earnings during price downturns.
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Pooran Sharma (Stephens) pressed for details on prepared foods margin trends given current investments. Miller confirmed a short-term margin dip while targeting a 19% EBITDA margin for the year, tied to long-term capacity expansion.
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Leah Jordan (Goldman Sachs) questioned the cadence of specialty egg and prepared foods growth and the role of acquisitions versus organic expansion. Management indicated both avenues are being pursued, with specialty eggs expected to exceed half of shell egg sales over time.
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Ben Klieve (Benchmark Stonex) asked about the flat specialty egg volumes despite prior growth. Miller and Bowman attributed this to tough year-on-year comparisons and highlighted strong underlying trends, especially in free-range and pasture-raised segments.
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Benjamin Mayhew (BMO Capital Markets) queried whether lower outside egg purchases would provide ongoing cost benefits. Management responded that as internal supply recovers, reliance on outside purchases should decline, but flexibility remains essential given persistent avian influenza risks.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will monitor (1) the pace at which specialty eggs and prepared foods grow as a share of total sales, (2) the operational impact and margin trends from ongoing automation and capacity expansions at Echo Lake Foods and Trapini Foods, and (3) how Cal-Maine manages supply chain challenges and avian influenza risks. Progress on integrating new acquisitions and maintaining a strong balance sheet will also be important signposts.
Cal-Maine currently trades at $72.58, down from $79.08 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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