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CalMaine Foods (CALM) to Report Q3 Earnings: What's in Store?

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CalMaine Foods (CALM - Free Report) will release third-quarter fiscal 2023 results on Mar 28, after market close.

Q3 Results

In the last reported quarter, CalMaine Foods delivered earnings per share of $4.07, which marked a solid improvement from earnings of 2 cents in the year-ago quarter. Revenues surged 105% year over year, driven by record average conventional egg selling price. Earnings also beat the Zacks Consensus Estimate. CALM has a trailing four-quarter negative earnings surprise of 15.30%, on average.

Cal-Maine Foods, Inc. Price and EPS Surprise

 

Cal-Maine Foods, Inc. Price and EPS Surprise

Cal-Maine Foods, Inc. price-eps-surprise | Cal-Maine Foods, Inc. Quote

Q4 Estimates

The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings per share for CALM is pegged at $6.00. The estimate has been unchanged over the past 30 days and indicates a year-over-year improvement of 640.7%.

Factors at Play

CalMaine Food’s results have been benefiting from record average selling prices for conventional eggs primarily due to fears of reduced supply, stemming from the outbreak of the highly pathogenic avian influenza in the United States. Volumes have been strong due to solid customer demand. The preference for specialty eggs, including cage-free eggs, continues to be on the rise and consumers are willing to pay premium prices for these products. Demand has also been supported by states passing legislation or regulations mandating minimum space or cage-free requirements for egg production or mandating the sale of only cage-free eggs and egg products. All these factors are expected to reflect on the company’s top-line performance in the third quarter of fiscal 2023.

Higher feed costs are likely to have weighed on margins in the quarter under review. Nevertheless, the company’s ongoing focus on cost control is likely to have helped counter this impact.

What Our Zacks Model Indicates

Our proven model does not conclusively predict an earnings beat for CalMaine Foods this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here, as elaborated below. You can see the complete list of today's Zacks #1 Rank stocks here.

Earnings ESP: The Earnings ESP for CALM is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank of 3.

Price Performance

CALM shares have gained 8.4% in the past year against the industry’s 18.1% fall.

 

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Stocks Poised to Beat Estimates

Here are some stocks, which have the right combination of elements to post an earnings beat in their upcoming releases.

Fastenal (FAST - Free Report) is slated to report first-quarter fiscal 2023 results on Apr 13. FAST has an Earnings ESP of +0.29% and a Zacks Rank of 2 at present. Its earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 3.3%.

The Zacks Consensus Estimate for FAST’s first-quarter earnings has been unchanged at 49 cents per share over the past 60 days. The estimate suggests an increase of 4.3% from the year-ago quarter’s reported earnings. Fastenal’s quarterly revenues are projected to increase 7% year over year to $1.83 billion.

Walgreens Boots Alliance, Inc. (WBA - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank of 3. The company is slated to report fourth-quarter fiscal 2023 results on Mar 28. WBA’s earnings outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.72%.

The Zacks Consensus Estimate for WBA’s fourth-quarter earnings stands at $1.12 per share, implying a year-over-year increase of 16.7%. It is expected to report revenues of $33.67 billion, which suggests a 3.3% dip from the year-ago quarter's reported figure.

Constellation Brands (STZ - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank of 3. The company is expected to report fourth-quarter fiscal 2023 results on Apr 4. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing one quarter, the average surprise being 6.14%.

The Zacks Consensus Estimate for CTZ’s fourth-quarter earnings is pegged at $1.91 per share, indicating a year-over-year decline of 19.4%. The estimate has been unchanged in the past 60 days. The consensus mark for revenues stands at $2.03 billion, suggesting a year-over-year decrease of 3.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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