Earnings Update: Cal-Maine Foods, Inc. (NASDAQ:CALM) Just Reported And Analysts Are Boosting Their Estimates

Cal-Maine Foods, Inc. (NASDAQ:CALM) just released its latest annual results and things are looking bullish. The company beat expectations with revenues of US$4.3b arriving 3.9% ahead of forecasts. Statutory earnings per share (EPS) were US$24.95, 3.1% ahead of estimates. 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.

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Taking into account the latest results, the three analysts covering Cal-Maine Foods provided consensus estimates of US$3.75b revenue in 2026, which would reflect an uncomfortable 12% decline over the past 12 months. Statutory earnings per share are expected to dive 37% to US$15.77 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$3.28b and earnings per share (EPS) of US$12.41 in 2026. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Cal-Maine Foods

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$109, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Cal-Maine Foods at US$115 per share, while the most bearish prices it at US$105. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 12% by the end of 2026. This indicates a significant reduction from annual growth of 22% 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 2.6% annually for the foreseeable future. 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 no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Cal-Maine Foods going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Cal-Maine Foods (1 is a bit unpleasant!) that we have uncovered.

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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.