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Cal-Maine Foods, Inc. (NASDAQ: CALM) Earnings Report Highlights

- (Last modified: Apr 9, 2025 1:17 PM)

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  • Earnings per Share (EPS) of $10.38, missing the expected $10.75.
  • Revenue reached approximately $1.42 billion, slightly below the anticipated $1.43 billion.
  • Significant increase in egg prices, with the net average selling price rising to $4.06 per dozen.

Cal-Maine Foods, Inc. (NASDAQ: CALM) is a leading producer and distributor of fresh shell eggs in the United States, competing with key players like Rose Acre Farms and Hillandale Farms. The company's focus is on the production, grading, packaging, and sale of shell eggs.

On April 8, 2025, CALM reported an EPS of $10.38, which was below the expected $10.75. The company's revenue for the fiscal third quarter was approximately $1.42 billion, slightly missing the anticipated $1.43 billion. Despite this, CALM's revenue doubled compared to the previous year, driven by a significant increase in egg prices.

The net average selling price of eggs rose to $4.06 per dozen from $2.25 per dozen a year ago, contributing to the revenue growth. However, the company's performance did not meet Wall Street's expectations, leading to a decline in its share price during after-hours trading. The ongoing Department of Justice investigation into egg price increases is also a challenge for CALM.

CALM's financial metrics reveal a price-to-earnings (P/E) ratio of approximately 7.00, indicating a low valuation relative to its earnings. The price-to-sales ratio is about 1.44, meaning investors pay $1.44 for every dollar of sales. The enterprise value to sales ratio is around 1.39, reflecting the company's total valuation in relation to its sales.

The company maintains a strong current ratio of 5.46, showcasing its ability to cover short-term liabilities with short-term assets. CALM's earnings yield is approximately 14.28%, offering a substantial return on investment relative to its share price. Additionally, CALM announced a definitive agreement to acquire Echo Lake Foods, Inc., which is expected to enhance its operational capabilities and market reach.

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