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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