Earnings Miss: Cal-Maine Foods, Inc. Missed EPS By 11% And Analysts Are Revising Their Forecasts

Investors in Cal-Maine Foods, Inc. (NASDAQ:CALM) had a good week, as its shares rose 3.1% to close at US$75.41 following the release of its quarterly results. Results were mixed, with revenues of US$786m exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were US$3.06 per share, -11% below whatthe analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Cal-Maine Foods

Taking into account the latest results, the two analysts covering Cal-Maine Foods provided consensus estimates of US$2.59b revenue in 2025, which would reflect a measurable 2.5% decline over the past 12 months. Statutory earnings per share are expected to dip 2.9% to US$8.45 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$2.35b and earnings per share (EPS) of US$6.99 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a great increase in earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Cal-Maine Foods 18% to US$71.00on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cal-Maine Foods' past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 3.3% annualised decline to the end of 2025. That is a notable change from historical 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 2.9% 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, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Cal-Maine Foods going out as far as 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Cal-Maine Foods you should be aware of, and 1 of them is concerning.

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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.