The 10-second takeaway
For the quarter ended March 2 (Q3), Cal-Maine Foods beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Margins dropped across the board.
Cal-Maine Foods reported revenue of $360.4 million. The two analysts polled by S&P Capital IQ expected net sales of $352.9 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $303.7 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 $1.27. The two earnings estimates compiled by S&P Capital IQ forecast $1.19 per share. GAAP EPS of $1.27 for Q3 were 17% higher than the prior-year quarter's $1.09 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 18.6%, 290 basis points worse than the prior-year quarter. Operating margin was 8.6%, 290 basis points worse than the prior-year quarter. Net margin was 8.5%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $306.0 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $1.26 billion. The average EPS estimate is $2.72.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 721 members out of 761 rating the stock outperform, and 40 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 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 hold, with an average price target of $44.00.
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