Egg company Cal-Maine Foods (NASDAQ: CALM) will be reporting earnings this Wednesday before market hours. Here’s what you need to know.
Cal-Maine beat analysts’ revenue expectations last quarter, reporting revenues of $667 million, down 53% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates.
Is Cal-Maine a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Cal-Maine’s revenue to decline 48.9% year on year, a reversal from the 72.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Cal-Maine has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Cal-Maine’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. WD-40 delivered year-on-year revenue growth of 24.3%, beating analysts’ expectations by 12.9%, and Simply Good Foods reported a revenue decline of 6.3%, topping estimates by 5.1%. WD-40 traded up 10.6% following the results while Simply Good Foods’s stock price was unchanged.
Read our full analysis of WD-40’s results here and Simply Good Foods’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 6.8% on average over the last month. Cal-Maine is up 15.2% during the same time and is heading into earnings with an average analyst price target of $84.25 (compared to the current share price of $87.51).
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