The 10-second takeaway
For the quarter ended June 2 (Q4), Cal-Maine Foods beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins dropped, and net margins increased.
Cal-Maine Foods tallied revenue of $275.2 million. The three analysts polled by S&P Capital IQ hoped for net sales of $259.7 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $242.4 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 $1.56. The one earnings estimate compiled by S&P Capital IQ predicted $1.64 per share. GAAP EPS of $1.56 for Q4 were 420% higher than the prior-year quarter's $0.30 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 15%, 370 basis points worse than the prior-year quarter. Operating margin was 4.4%, 290 basis points worse than the prior-year quarter. Net margin was 13.5%, 1,050 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $263 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $2.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 725 members rating the stock outperform and 40 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 142 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 outperform, with an average price target of $33.00.
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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 no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.