The 10-second takeaway
For the quarter ended June 1 (Q4), Cal-Maine Foods beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share contracted to a loss.
Gross margins grew, operating margins dropped, net margins shrank.
Cal-Maine Foods logged revenue of $325.9 million. The two analysts polled by S&P Capital IQ predicted revenue of $319.8 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $275.2 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 -$0.16. The two earnings estimates compiled by S&P Capital IQ predicted $0.77 per share. GAAP EPS were -$0.16 for Q4 compared to $1.56 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.8%, 140 basis points better than the prior-year quarter. Operating margin was -2.2%, 600 basis points worse than the prior-year quarter. Net margin was -1.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $305.1 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $1.32 billion. The average EPS estimate is $3.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 727 members out of 767 rating the stock outperform, and 40 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 give Cal-Maine Foods a green thumbs-up, and six 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 $38.00.
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 position in any of the stocks mentioned. 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.