Earnings Beat: Cal-Maine Foods, Inc. (NASDAQ:CALM) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts

Investors in Cal-Maine Foods, Inc. (NASDAQ:CALM) had a good week, as its shares rose 8.6% to close at US$71.05 following the release of its yearly results. Revenues of US$2.3b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$5.69, missing estimates by 4.9%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cal-Maine Foods after the latest results.

View our latest analysis for Cal-Maine Foods

Following the recent earnings report, the consensus from twin analysts covering Cal-Maine Foods is for revenues of US$2.27b in 2025. This implies a measurable 2.3% decline in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.0% to US$5.90. Before this earnings report, the analysts had been forecasting revenues of US$2.16b and earnings per share (EPS) of US$3.75 in 2025. So it seems there's been a definite increase in optimism about Cal-Maine Foods' future following the latest results, with a considerable lift to the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Cal-Maine Foods 5.4% to US$59.00on the back of these upgrades.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.3% by the end of 2025. This indicates a significant reduction from annual growth of 19% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Cal-Maine Foods is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Cal-Maine Foods' earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Cal-Maine Foods (1 is a bit concerning) you should be aware of.

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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.

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