Bullish: Analysts Just Made A Substantial Upgrade To Their Cal-Maine Foods, Inc. (NASDAQ:CALM) Forecasts

Cal-Maine Foods, Inc. (NASDAQ:CALM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

Following the upgrade, the most recent consensus for Cal-Maine Foods from its three analysts is for revenues of US$3.0b in 2023 which, if met, would be a solid 19% increase on its sales over the past 12 months. Per-share earnings are expected to jump 49% to US$14.42. Prior to this update, the analysts had been forecasting revenues of US$2.7b and earnings per share (EPS) of US$11.11 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Cal-Maine Foods

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Cal-Maine Foods' growth to accelerate, with the forecast 42% annualised growth to the end of 2023 ranking favourably alongside historical growth of 7.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Cal-Maine Foods is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Cal-Maine Foods' future.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risks with Cal-Maine Foods, including recent substantial insider selling. You can learn more, and discover the 2 other risks we've identified, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.