- Cal-Maine Foods reported 1Q earnings per share (EPS) of $3.06, missing the estimated $3.36.
- Net sales reached $785.9 million, a 71% increase year-over-year, and surpassed the $705 million estimate.
- A total of 309.98 million dozen eggs were sold, reflecting a 13% increase from the previous year.
- The net average selling price per dozen eggs was $2.392, marking a 51% year-over-year increase.
- Net income for the first quarter of fiscal 2025 was $150.0 million, or $3.06 per diluted share, compared to $926,000, or $0.02 per diluted share, the previous year.
- First quarter farm production costs per dozen eggs decreased by 11.7% from the previous year, mainly due to more favorable commodity pricing for key feed ingredients.
- Expenses for egg purchases and other costs increased significantly compared to the previous quarter, driven by higher shell egg prices and an increase in dozens purchased.
- The rise in purchases was also attributed to production losses from Highly Pathogenic Avian Influenza (HPAI) outbreaks at Cal-Maine’s facilities.
- Analyst recommendations stand at 1 buy, 0 holds, and 1 sell.
Cal Maine Foods on Smartkarma
Cal-Maine Foods Inc (CALM) is receiving positive analyst coverage on Smartkarma from Value Investors Club. According to their research report published on Wednesday, Mar 13, 2024, the analyst from Value Investors Club sees Cal-Maine Foods as a promising long-term investment with the potential for around 50% upside. They highlight that the stock is currently undervalued due to low historical book multiples and high short interest. The analyst also notes that Cal-Maine Foods has a cost advantage over its peers and strong earnings potential, especially in the event of an avian flu outbreak.
A look at Cal Maine Foods Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Cal Maine Foods, Inc., known for producing and selling fresh shell eggs across multiple regions in the United States, shows a promising long-term outlook. The company’s Smartkarma Smart Scores reflect positive indicators for growth and momentum, with a strong score of 5 in both categories. This suggests that Cal Maine Foods is well-positioned for future expansion and has good market traction. Additionally, the company demonstrates resilience with a score of 4, indicating its ability to withstand challenges and maintain stability. While the value and dividend scores are middling at 3, they still contribute to the overall positive outlook for Cal Maine Foods.
Overall, based on the Smartkarma Smart Scores, Cal Maine Foods appears to have a solid foundation for long-term success in the industry. With high marks in growth and momentum, the company is likely to see continued development and market performance. Its resilience score further reinforces its ability to navigate uncertainties effectively. While there may be room for improvement in terms of value and dividend scores, the strengths in growth and momentum position Cal Maine Foods as a promising player in the fresh shell egg market.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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