Cal-Maine Foods (NASDAQ:CALM) Issues Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Cal-Maine Foods (NASDAQ:CALM) announced its earnings results on Wednesday. The basic materials company reported $2.13 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.17 by ($0.04), Zacks reports. Cal-Maine Foods had a return on equity of 52.31% and a net margin of 28.86%.The company had revenue of $769.50 million for the quarter, compared to the consensus estimate of $828.46 million. During the same period in the previous year, the company earned $4.47 EPS. The firm’s revenue for the quarter was down 19.4% compared to the same quarter last year.

Here are the key takeaways from Cal-Maine Foods’ conference call:

• Cal‑Maine is shifting its sales mix toward higher‑margin businesses — specialty eggs and prepared foods made up 46.4% of Q2 net sales (specialty = 44% of shell egg sales), which management says enhances earnings durability and mid‑cycle resilience.
• Management is investing to scale prepared foods — announced projects (a $15M scrambled‑egg consolidation adding ~$17M annual capacity, a $14.8M high‑speed pancake line adding ~$12M, and a $7M Crepini JV adding ~$18M) are expected to lift prepared‑foods capacity by >30% in 18–24 months and target ~19% EBITDA margins.
• Near‑term financial pressure — Q2 net sales fell 19.4% to $769.5M and net income declined 53.1% to $102.8M (diluted EPS $2.13), with gross profit and operating income margins meaningfully down year‑over‑year.
• Strong liquidity and shareholder returns — the company ended Q2 with ~$1.1B in cash, is virtually debt‑free, repurchased $74.8M of stock during the quarter, and will pay a variable dividend (~$0.72/share), supporting capital flexibility for M&A and reinvestment.
• Industry downside risk remains from high‑path avian influenza — management warns outbreaks are still widespread and recovery is uneven, meaning supply disruption risk persists and could affect future production and costs.

Cal-Maine Foods Stock Performance

NASDAQ:CALM opened at $77.81 on Thursday. The firm’s 50-day moving average is $85.11 and its 200-day moving average is $96.72. The company has a market cap of $3.77 billion, a price-to-earnings ratio of 2.99 and a beta of 0.26. Cal-Maine Foods has a 52-week low of $74.74 and a 52-week high of $126.40.

Cal-Maine Foods Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 12th. Stockholders of record on Wednesday, January 28th will be issued a dividend of $0.72 per share. The ex-dividend date is Wednesday, January 28th. This represents a $2.88 annualized dividend and a dividend yield of 3.7%. Cal-Maine Foods’s payout ratio is presently 21.18%.

Analyst Ratings Changes

A number of brokerages have recently weighed in on CALM. Lake Street Capital set a $97.00 price objective on shares of Cal-Maine Foods in a research note on Friday, October 3rd. BMO Capital Markets dropped their target price on shares of Cal-Maine Foods from $105.00 to $97.00 and set a “market perform” rating on the stock in a report on Friday, October 3rd. Weiss Ratings lowered shares of Cal-Maine Foods from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, December 29th. Stephens set a $95.00 price target on Cal-Maine Foods and gave the company an “equal weight” rating in a research report on Tuesday, December 30th. Finally, Benchmark reiterated a “buy” rating on shares of Cal-Maine Foods in a research note on Monday. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $97.40.

Hedge Funds Weigh In On Cal-Maine Foods

Several institutional investors and hedge funds have recently added to or reduced their stakes in CALM. IFP Advisors Inc lifted its position in shares of Cal-Maine Foods by 58.2% in the 3rd quarter. IFP Advisors Inc now owns 378 shares of the basic materials company’s stock worth $37,000 after acquiring an additional 139 shares during the period. CIBC Bancorp USA Inc. acquired a new position in shares of Cal-Maine Foods in the third quarter valued at $461,000. Sunbelt Securities Inc. bought a new position in Cal-Maine Foods in the third quarter worth $112,000. Danske Bank A S bought a new position in Cal-Maine Foods in the third quarter worth $832,000. Finally, Advisory Services Network LLC boosted its stake in Cal-Maine Foods by 105.8% during the third quarter. Advisory Services Network LLC now owns 5,473 shares of the basic materials company’s stock worth $515,000 after buying an additional 2,813 shares in the last quarter. 84.67% of the stock is currently owned by institutional investors.

Key Stories Impacting Cal-Maine Foods

Here are the key news stories impacting Cal-Maine Foods this week:

• Positive Sentiment: Strong growth and investment in higher‑margin businesses: prepared foods sales jumped ~586% YoY and management announced a $36M investment to expand prepared‑foods capacity (over 30% increase) — a key part of the pivot toward more stable, higher‑value revenue. Cal‑Maine Foods Reports Second Quarter Fiscal 2026 Financial Results and Strategic Developments
• Positive Sentiment: Specialty mix gaining share: specialty eggs now ~44% of shell egg sales and specialty + prepared foods account for ~46% of net sales — which management says should lower earnings volatility over time. Cal‑Maine Foods Reports Second Quarter Fiscal 2026 Financial Results and Strategic Developments
• Positive Sentiment: Shareholder returns: company repurchased ~846k shares for $74.8M in the quarter and declared a quarterly cash dividend of ~$0.72/share (payable Feb 12; record Jan 28), supporting income investors. Cal‑Maine Foods Reports Second Quarter Fiscal 2026 Financial Results and Strategic Developments
• Neutral Sentiment: Earnings call/strategy commentary: management framed results as part of a deliberate “evolution” toward higher‑value products; investors will watch execution on integrations (Echo Lake, Clean Egg) and capacity projects. Cal‑Maine Foods, Inc. (CALM) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Revenue and profit miss: Q2 net sales of $769.5M were ~19% lower YoY and below consensus; gross profit fell ~42% and net income dropped ~53% YoY — driven largely by a sharp decline in shell egg prices. Cal‑Maine (NASDAQ:CALM) Misses Q4 CY2025 Sales Expectations
• Negative Sentiment: Market reaction and volume: despite a small EPS miss (reported $2.13 vs. $2.17 est.), the revenue shortfall and lower egg market prices prompted selling pressure; volume spiked well above average as investors re‑priced the near‑term outlook. Stock Market Live January 7: S&P 500 (VOO) Rises on Positive Employment Report

Cal-Maine Foods Company Profile

Cal-Maine Foods, Inc, together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, free-range, pasture-raised, and brown eggs under the Egg-Land's Best, Land O' Lakes, Farmhouse Eggs, Sunups, Sunny Meadow, and 4Grain brand names. It sells its products to various customers, including national and regional grocery store chains, club stores, independent supermarkets, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States.