Cal-Maine Foods (NAS: CALM) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 25 (Q3), Cal-Maine Foods met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Cal-Maine Foods reported revenue of $303.7 million. The two analysts polled by S&P Capital IQ expected revenue of $305.5 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $274.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.09. The two earnings estimates compiled by S&P Capital IQ averaged $1.13 per share. GAAP EPS of $1.09 for Q3 were 22% lower than the prior-year quarter's $1.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.5%, 240 basis points worse than the prior-year quarter. Operating margin was 11.5%, 270 basis points worse than the prior-year quarter. Net margin was 8.6%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $264 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $3.03.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 732 members rating the stock outperform, and 41 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 give Cal-Maine Foods a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cal-Maine Foods is hold, with an average price target of $33.
Over the decades, small-cap stocks like Cal-Maine Foods have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
Add Cal-Maine Foods to My Watchlist.
At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.