Cal-Maine Foods, Inc. (NASDAQ: $CALM) released its Q3 fiscal 2025 earnings report, which missed Wall Street forecasts. After the announcement, CALM stock dropped 3.7% in after-hours trading.
The company reported earnings per share (EPS) of $10.38, falling short of the $10.91 estimate. Revenue reached $1.42 billion, slightly below the expected $1.43 billion. However, this still marked a 102% year-over-year growth from $703.1 million.
Cal-Maine sold 331.4 million dozen eggs in the quarter, up 10.2% from last year. The average selling price rose sharply to $4.060 per dozen, compared to $2.247 a year ago. The price hike was due to tighter industry supply caused by avian influenza outbreaks.
Sherman Miller, Cal-Maine’s CEO, praised the team for strong production performance during high demand. He credited their strict biosecurity and safety standards.
Cal-Maine also confirmed it is acquiring Echo Lake Foods for $258 million. The deal is expected to close before the fiscal year ends. Additionally, the company declared a dividend of $3.46 per share and launched a $500 million share repurchase program.
Fundamentals And Industry Outlook
Cal-Maine is known for popular egg brands like Egg-Land’s Best and Land O’ Lakes. It operates within the competitive perishable food sector. This industry serves consumers focused on freshness and nutrition.
Cal-Maine posted annualized revenue growth of 35.3% over the past three years. In the last 12 months, it earned $3.80 billion in revenue. This strong growth came despite its mid-sized market cap of $4.58 billion. The company also reported a 44.8% operating margin this quarter, a sharp rise from 21.7% last year.
Technical Analysis
Cal-Maine’s stock closed at $90.33 on April 8th, down 3.34%. Since reaching a high of $116 in late January 2025, the price has been retracing.
A major ascending trendline has supported the stock since July 2023. This trendline, once resistance, was broken on September 30th, 2024, and now acts as a key support level.
Over the last three weeks, bullish weekly candles have formed near this trendline. These bullish candles suggest the trendline is holding for now. The stock’s 50-day, 100-day, and 200-day moving averages stand at $82, $66 and $57, respectively.
All are below the current market price. This alignment indicates continued bullish momentum. Looking at the weekly RSI as well, its reading of 48 is a neutral level and signals no clear overbought or oversold conditions.
The price currently tests support at the ascending trendline. If bulls maintain control, a rebound towards the previous high of $116 and above is possible. However, if the price breaks below the trendline, the next immediate support lies at $64.
Key resistance remains at the previous high of $116. Until then, any upside faces moderate resistance around the $100 psychological zone. The technical chart suggests this is a crucial point for the stock, as price behavior in the coming couple of sessions will decide the next direction.
Is It A Good Time To Buy?
Cal-Maine’s Q3 results showed strong year-over-year growth, although they missed analyst expectations. The company is also expanding with the Echo Lake acquisition and maintains strong financials. Technically, the stock sits on a long-term support trendline with bullish potential. All these factors confluence and offer a chance to capitalize on Cal-Maine.
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