Cal-Maine Foods (CALM) Stock Forecast & Price Target

Cal-Maine Foods Inc experienced a notable increase in net sales, which rose by 72.2% to $1,103.7 million, driven in part by a staggering 54.9% increase in the average selling price of all eggs to $3.31 per dozen. The company is also preparing for significant growth, with management projecting a greater than 30% increase in prepared foods capacity over the next 18-24 months, supported by a targeted EBITDA margin of approximately 19% as operational efficiencies are realized. Additionally, production metrics indicate a healthy pipeline, with chicks hatched showing an 11.3% year-over-year increase and the number of eggs in incubators up by 10.0% year-over-year, suggesting strong future supply potential.

Cal-Maine Foods Inc. has experienced a significant decline in earnings year-over-year, primarily due to falling egg prices from earlier highs, which has led to a downward revision of earnings per share estimates from $8.08 to $7.57. The conventional egg flock has also shown a persistent negative trend, reflecting a 13.6% year-over-year decrease, contributing to challenges in maintaining production volumes. Additionally, the company reported a 19.4% decrease in net sales, falling to $769.5 million, alongside a 2.2% drop in sales volumes compared to the previous year, indicating ongoing fundamental weaknesses in its operating environment.