Cal-Maine Foods (NASDAQ:CALM) Announces Earnings Results, Misses Estimates By $0.84 EPS

Cal-Maine Foods (NASDAQ:CALM) announced its quarterly earnings data on Wednesday. The basic materials company reported ($0.76) EPS for the quarter, missing the consensus estimate of $0.08 by ($0.84), FiscalAI reports. Cal-Maine Foods had a net margin of 20.07% and a return on equity of 26.05%. The business had revenue of $552.58 million during the quarter, compared to the consensus estimate of $563.83 million. During the same period last year, the company earned $7.04 EPS. The business’s revenue was down 49.9% compared to the same quarter last year.

Here are the key takeaways from Cal-Maine Foods’ conference call:

• Management said it is continuing to diversify the business through acquisitions and investment, including Creighton Brothers, Van’s Foods, and additional Eggland’s Best territory, while preparing a new $54 million capacity expansion in prepared foods.
• Fourth-quarter results were pressured by a historic low in conventional egg pricing, with consolidated revenue down 49.9% year over year and a quarterly net loss of $35.9 million.
• Prepared foods and specialty eggs are becoming a larger part of the mix, with combined specialty eggs and prepared foods reaching 53% of fourth-quarter sales, and management expects prepared foods capacity to rise by more than 60% from fiscal 2026 levels by mid-fiscal 2028.
• Management described specialty egg margins as more consistent with a normalized near-term level, noting that Q4 comparisons were distorted by unusually favorable prior-year pricing and strong seasonal demand.
• The company ended the year with $924.1 million in cash and remains virtually debt-free, while continuing share repurchases under its authorization and pointing to improving egg price trends entering fiscal 2027.

Cal-Maine Foods Price Performance

CALM stock opened at $87.86 on Thursday. The business has a 50-day moving average price of $80.10 and a 200 day moving average price of $80.36. The company has a market capitalization of $4.16 billion, a P/E ratio of 6.12 and a beta of 0.25. Cal-Maine Foods has a 1-year low of $71.92 and a 1-year high of $126.40.

Analysts Set New Price Targets

A number of research analysts have recently commented on CALM shares. BMO Capital Markets cut their price target on shares of Cal-Maine Foods from $85.00 to $80.00 and set a “market perform” rating on the stock in a report on Wednesday, March 25th. Stephens lowered their price objective on shares of Cal-Maine Foods from $90.00 to $85.00 and set an “equal weight” rating for the company in a research report on Tuesday, July 14th. Royal Bank Of Canada set a $100.00 target price on shares of Cal-Maine Foods in a research note on Tuesday, May 26th. Wells Fargo & Company set a $100.00 target price on shares of Cal-Maine Foods in a research report on Monday, July 13th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cal-Maine Foods in a research note on Wednesday, July 8th. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $94.29.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC increased its stake in Cal-Maine Foods by 12.8% during the second quarter. Smartleaf Asset Management LLC now owns 1,022 shares of the basic materials company’s stock worth $101,000 after purchasing an additional 116 shares during the period. Illinois Municipal Retirement Fund boosted its holdings in Cal-Maine Foods by 0.6% in the fourth quarter. Illinois Municipal Retirement Fund now owns 23,884 shares of the basic materials company’s stock valued at $1,900,000 after purchasing an additional 131 shares during the period. MML Investors Services LLC grew its stake in Cal-Maine Foods by 1.8% during the 4th quarter. MML Investors Services LLC now owns 7,428 shares of the basic materials company’s stock worth $591,000 after purchasing an additional 131 shares in the last quarter. IFP Advisors Inc increased its holdings in Cal-Maine Foods by 58.2% during the 3rd quarter. IFP Advisors Inc now owns 378 shares of the basic materials company’s stock worth $37,000 after purchasing an additional 139 shares during the period. Finally, Private Advisor Group LLC raised its position in Cal-Maine Foods by 4.1% in the 3rd quarter. Private Advisor Group LLC now owns 3,899 shares of the basic materials company’s stock valued at $367,000 after purchasing an additional 154 shares in the last quarter. 84.67% of the stock is currently owned by institutional investors.

Cal-Maine Foods News Roundup

Here are the key news stories impacting Cal-Maine Foods this week:

• Positive Sentiment: Cal-Maine continues to diversify beyond conventional eggs into specialty eggs and prepared foods, which could help reduce dependence on volatile commodity pricing. Article Title
• Neutral Sentiment: Some analysts and commentary are debating whether Cal-Maine Foods is fairly valued after the selloff, which could influence investor sentiment but does not change the earnings weakness. Article Title
• Neutral Sentiment: The company saw a surge in put option trading, signaling heightened bearish hedging and expectations for continued volatility. Article Title
• Negative Sentiment: Fourth-quarter results missed estimates badly, with a surprise loss and weaker revenue caused by historically low egg prices, a clear near-term headwind for CALM. Article Title

About Cal-Maine Foods

Cal-Maine Foods, Inc, together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, free-range, pasture-raised, and brown eggs under the Egg-Land's Best, Land O' Lakes, Farmhouse Eggs, Sunups, Sunny Meadow, and 4Grain brand names. It sells its products to various customers, including national and regional grocery store chains, club stores, independent supermarkets, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States.