The 10-second takeaway
For the quarter ended Feb. 25 (Q3), Cal-Maine Foods met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Cal-Maine Foods reported revenue of $303.7 million. The two analysts polled by S&P Capital IQ expected revenue of $305.5 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $274.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.09. The two earnings estimates compiled by S&P Capital IQ averaged $1.13 per share. GAAP EPS of $1.09 for Q3 were 22% lower than the prior-year quarter's $1.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.5%, 240 basis points worse than the prior-year quarter. Operating margin was 11.5%, 270 basis points worse than the prior-year quarter. Net margin was 8.6%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $264 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $3.03.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 732 members rating the stock outperform, and 41 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 give Cal-Maine Foods a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cal-Maine Foods is hold, with an average price target of $33.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.