Egg company Cal-Maine Foods (NASDAQ: CALM) will be announcing earnings results this Wednesday before market open. Here’s what to look for.
Cal-Maine missed analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $922.6 million, up 17.4% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is Cal-Maine a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Cal-Maine’s revenue to decline 16.8% year on year to $794.6 million, a reversal from the 82.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cal-Maine has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Cal-Maine’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. General Mills’s revenues decreased 7.2% year on year, beating analysts’ expectations by 1.9%, and Conagra reported a revenue decline of 6.8%, in line with consensus estimates. General Mills traded up 3.6% following the results while Conagra was down 3%.
Read our full analysis of General Mills’s results here and Conagra’s results here.
Investors in the consumer staples segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. Cal-Maine is down 7.2% during the same time and is heading into earnings with an average analyst price target of $95.50 (compared to the current share price of $79.38).
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