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CalMaine Foods (CALM) to Report Q1 Earnings: What's in Store?
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CalMaine Foods (CALM - Free Report) is anticipated to report a loss in first-quarter fiscal 2024 results when it reports its results later this month. The loss will reflect the recent decline in conventional egg prices, expected low sales volumes due to seasonal factors as well as inflated costs through the quarter.
Q4 Results
In the fourth quarter of fiscal 2023, CalMaine Foods delivered earnings per share of $2.27, which were up 1% from earnings of $2.25 per share in the year-ago quarter. Earnings per share also beat the Zacks Consensus Estimate of earnings of $1.38 per share by a margin of 64%.
In the trailing four quarters, CalMaine Foods has surpassed the consensus estimate in three quarters, while missing in one quarter. CALM has a trailing four-quarter positive earnings surprise of 24.1%, on average.
CalMaine’s revenues in the quarter increased 16% year over year to $688.7 million. This was driven by higher average selling price for specialty eggs as well as increased sales volumes of both conventional and specialty eggs.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share for CALM is currently pegged at a loss of 1 cent per share. The estimate has remained unchanged in the past 30 days. The consensus mark indicates a substantial fall from the earnings per share of $2.57 in the first quarter of fiscal 2023.
Average selling prices for conventional eggs had soared in the earlier parts of this year, gaining on the back of the outbreak of the highly pathogenic avian influenza (HPAI) in the United States and higher grain and other input costs. However, prices have been on a downtrend since May this year as the egg industry began to recover from the effects of HPAI. Supply has also improved. Per the U.S. Bureau of Labor Statistics, conventional egg prices have declined 18%, 29% and 34% year over year in June, July and August 2023, respectively.
This suggests a 27% plunge in average egg prices in the June to August period, which corresponds to CalMaine’s fiscal first-quarter 2024 performance. This decline in conventional egg prices will be a drag on its top-line performance in the quarter-to-be-reported.
However, prices for specialty eggs have remained higher than the year-ago levels as customer demand remains strong. This will likely to have offset some of the impact of the decline in conventional eggs prices on CalMaine’s results. However, the company has historically seen lower sales volumes in summer, which is expected to have reflected on the company’s results in the first quarter of fiscal 2024.
The company has been witnessing higher costs across various inputs, including feed, labor, packaging, and distribution costs, in the past few quarters. Prices of feed (corn and soybean) have declined on a year-over-year basis through the first quarter of fiscal 2024. However, packaging, labor and other costs have remained elevated due to the inflationary scenario. This is likely to have weighed on CALM’s margins in the quarter under review. The company’s ongoing focus on cost control is likely to have helped counter some of this impact.
Overall, lower prices of conventional eggs, lower sales volume and higher costs are likely to have impacted the company’s bottom-line results.
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.
Earnings ESP: The Earnings ESP for CALM is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank # 5 (Strong Sell).
Price Performance
CALM shares have declined 19.5% in the past year against the industry’s 12.5% growth.
Image Source: Zacks Investment Research
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.
CMC has a trailing four-quarter earnings surprise of 6.6%, on average. The Zacks Consensus Estimate for CMC’s fourth-quarter earnings is currently pegged at $1.88 per share. The estimate suggests a decrease of 23% from the year-ago quarter’s reported earnings. CMC’s quarterly revenues are projected to decline 13% year over year to $2.1 billion.
Cintas (CTAS - Free Report) as an Earnings ESP of +1.61% and a Zacks Rank of 2. The company is set to report first-quarter fiscal 2024 results on Sep 26. The company’s earnings outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.8%.
The consensus estimate for CTAS’s to-be-reported quarter’s earnings stands at $3.65 per share, implying year-over-year growth of 7.8%. The estimate has moved up 1% over the past 30 days. CTAS is expected to report revenues of $2.32 billion, which suggests 7.3% growth from the year-ago quarter's reported figure.
Constellation Brands, Inc. (STZ - Free Report) currently has an Earnings ESP of +0.36% and a Zacks Rank of 2. The company will report second-quarter fiscal 2024 numbers on Oct 5. The Zacks Consensus Estimate for the quarterly earnings per share of $3.37 suggests a 6% increase from the figure reported in the year-ago quarter. The consensus mark has moved up 1% over the past 30 days.
STZ has a trailing four-quarter earnings surprise of 4.4%, on average. The Zacks Consensus Estimate for Constellation Brands’ quarterly revenues is pegged at $2.84 billion, suggesting a 7.1% year-over-year growth.
Image: Bigstock
CalMaine Foods (CALM) to Report Q1 Earnings: What's in Store?
CalMaine Foods (CALM - Free Report) is anticipated to report a loss in first-quarter fiscal 2024 results when it reports its results later this month. The loss will reflect the recent decline in conventional egg prices, expected low sales volumes due to seasonal factors as well as inflated costs through the quarter.
Q4 Results
In the fourth quarter of fiscal 2023, CalMaine Foods delivered earnings per share of $2.27, which were up 1% from earnings of $2.25 per share in the year-ago quarter. Earnings per share also beat the Zacks Consensus Estimate of earnings of $1.38 per share by a margin of 64%.
In the trailing four quarters, CalMaine Foods has surpassed the consensus estimate in three quarters, while missing in one quarter. CALM has a trailing four-quarter positive earnings surprise of 24.1%, on average.
CalMaine’s revenues in the quarter increased 16% year over year to $688.7 million. This was driven by higher average selling price for specialty eggs as well as increased sales volumes of both conventional and specialty eggs.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share for CALM is currently pegged at a loss of 1 cent per share. The estimate has remained unchanged in the past 30 days. The consensus mark indicates a substantial fall from the earnings per share of $2.57 in the first quarter of fiscal 2023.
Cal-Maine Foods, Inc. Price and EPS Surprise
Cal-Maine Foods, Inc. price-eps-surprise | Cal-Maine Foods, Inc. Quote
Factors at Play
Average selling prices for conventional eggs had soared in the earlier parts of this year, gaining on the back of the outbreak of the highly pathogenic avian influenza (HPAI) in the United States and higher grain and other input costs. However, prices have been on a downtrend since May this year as the egg industry began to recover from the effects of HPAI. Supply has also improved.
Per the U.S. Bureau of Labor Statistics, conventional egg prices have declined 18%, 29% and 34% year over year in June, July and August 2023, respectively.
This suggests a 27% plunge in average egg prices in the June to August period, which corresponds to CalMaine’s fiscal first-quarter 2024 performance. This decline in conventional egg prices will be a drag on its top-line performance in the quarter-to-be-reported.
However, prices for specialty eggs have remained higher than the year-ago levels as customer demand remains strong. This will likely to have offset some of the impact of the decline in conventional eggs prices on CalMaine’s results. However, the company has historically seen lower sales volumes in summer, which is expected to have reflected on the company’s results in the first quarter of fiscal 2024.
The company has been witnessing higher costs across various inputs, including feed, labor, packaging, and distribution costs, in the past few quarters. Prices of feed (corn and soybean) have declined on a year-over-year basis through the first quarter of fiscal 2024. However, packaging, labor and other costs have remained elevated due to the inflationary scenario. This is likely to have weighed on CALM’s margins in the quarter under review. The company’s ongoing focus on cost control is likely to have helped counter some of this impact.
Overall, lower prices of conventional eggs, lower sales volume and higher costs are likely to have impacted the company’s bottom-line results.
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.
Earnings ESP: The Earnings ESP for CALM is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank # 5 (Strong Sell).
Price Performance
CALM shares have declined 19.5% in the past year against the industry’s 12.5% growth.
Image Source: Zacks Investment Research
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.
Commercial Metals (CMC - Free Report) will report fourth-quarter fiscal 2023 results on Oct 12. The company has an Earnings ESP of +0.71% and a Zacks Rank of 1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
CMC has a trailing four-quarter earnings surprise of 6.6%, on average. The Zacks Consensus Estimate for CMC’s fourth-quarter earnings is currently pegged at $1.88 per share. The estimate suggests a decrease of 23% from the year-ago quarter’s reported earnings. CMC’s quarterly revenues are projected to decline 13% year over year to $2.1 billion.
Cintas (CTAS - Free Report) as an Earnings ESP of +1.61% and a Zacks Rank of 2. The company is set to report first-quarter fiscal 2024 results on Sep 26. The company’s earnings outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.8%.
The consensus estimate for CTAS’s to-be-reported quarter’s earnings stands at $3.65 per share, implying year-over-year growth of 7.8%. The estimate has moved up 1% over the past 30 days. CTAS is expected to report revenues of $2.32 billion, which suggests 7.3% growth from the year-ago quarter's reported figure.
Constellation Brands, Inc. (STZ - Free Report) currently has an Earnings ESP of +0.36% and a Zacks Rank of 2. The company will report second-quarter fiscal 2024 numbers on Oct 5. The Zacks Consensus Estimate for the quarterly earnings per share of $3.37 suggests a 6% increase from the figure reported in the year-ago quarter. The consensus mark has moved up 1% over the past 30 days.
STZ has a trailing four-quarter earnings surprise of 4.4%, on average. The Zacks Consensus Estimate for Constellation Brands’ quarterly revenues is pegged at $2.84 billion, suggesting a 7.1% year-over-year growth.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.