Yahoo Finance Cal-Maine Foods, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
It's been a good week for Cal-Maine Foods, Inc. (NASDAQ:CALM) shareholders, because the company has just released its latest third-quarter results, and the shares gained 6.7% to US$62.80. Revenues were US$703m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$3.00, an impressive 22% ahead of estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Cal-Maine Foods
Taking into account the latest results, the current consensus, from the two analysts covering Cal-Maine Foods, is for revenues of US$1.97b in 2025. This implies a considerable 17% reduction in Cal-Maine Foods' revenue over the past 12 months. Statutory earnings per share are forecast 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 nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.2% to US$57.33.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 14% annualised decline to the end of 2025. That is a notable change from historical 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 2.7% per year. 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Plus, you should also learn about the 4 warning signs we've spotted with Cal-Maine Foods (including 1 which is potentially serious) .
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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.
