The 10-second takeaway
For the quarter ended Dec. 1 (Q2), Cal-Maine Foods beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Cal-Maine Foods chalked up revenue of $328.9 million. The three analysts polled by S&P Capital IQ expected sales of $320.8 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $290.4 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 $0.60. The three earnings estimates compiled by S&P Capital IQ predicted $0.97 per share. GAAP EPS of $0.60 for Q2 were 38% lower than the prior-year quarter's $0.97 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 15.6%, 560 basis points worse than the prior-year quarter. Operating margin was 6.2%, 610 basis points worse than the prior-year quarter. Net margin was 4.3%, 370 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $348.9 million. On the bottom line, the average EPS estimate is $1.23.
Next year's average estimate for revenue is $1.24 billion. The average EPS estimate is $3.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 734 members out of 774 rating the stock outperform, and 40 members rating it underperform. Among 168 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give Cal-Maine Foods a green thumbs-up, and seven 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 $44.00.
The rich are different than you and me: They might not notice the moneymaking stories right under our noses. In our new report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice," we give you three Peter Lynch-inspired buy-what-you-know stocks for the 99%. Click here for instant access to this free report.
- Add Cal-Maine Foods to My Watchlist.
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.