Cal-Maine Foods, Inc. Just Recorded A 22% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Cal-Maine Foods, Inc. (NASDAQ:CALM) had a good week, as its shares rose 6.7% to close at US$62.80 following the release of its third-quarter results. It looks like a credible result overall - although revenues of US$703m were what the analysts expected, Cal-Maine Foods surprised by delivering a (statutory) profit of US$3.00 per share, an impressive 22% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Cal-Maine Foods

After the latest results, the consensus from Cal-Maine Foods' two analysts is for revenues of US$1.97b in 2025, which would reflect an uncomfortable 17% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to dive 56% to US$2.45 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.95b and earnings per share (EPS) of US$2.16 in 2025. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target rose 6.2% to US$57.33, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 14% by the end of 2025. This indicates a significant reduction from annual growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.7% annually for the foreseeable future. It's pretty clear that Cal-Maine Foods' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Cal-Maine Foods following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Cal-Maine Foods' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Cal-Maine Foods. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Cal-Maine Foods going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Cal-Maine Foods has 4 warning signs (and 1 which can't be ignored) we think you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.