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Investing.com - Stephens raised its price target on Cal-Maine Foods (NASDAQ:CALM) to $115.00 from $108.00 on Thursday, while maintaining an Equal Weight rating on the stock. The company, which boasts a perfect Piotroski Score of 9 according to InvestingPro, trades at an attractive P/E ratio of 4.2x.
The price target increase follows Cal-Maine’s fourth-quarter 2025 adjusted earnings per share of $7.05, which exceeded both Stephens’ estimate of $6.16 and the consensus estimate of $6.27.
The company reported adjusted EBITDA of $496.6 million for the quarter, surpassing Stephens’ forecast of $430.8 million and the consensus estimate of $420.3 million.
According to Stephens, the earnings beat was primarily driven by better price realization of Cal-Maine’s egg prices compared to USDA quotes, attributed to a more stabilized price curve throughout much of the quarter.
Stephens noted that despite a strong outlook for elevated egg prices through the next couple of quarters, supported by U.S. egg industry near decade-low levels in egg laying hens, the firm believes Cal-Maine shares are fairly valued, particularly after Wednesday’s price movement.
In other recent news, Cal-Maine Foods reported fourth-quarter earnings and revenue that significantly exceeded analyst expectations. The company posted adjusted earnings of $7.04 per share, surpassing the analyst consensus of $5.43. Revenue reached $1.1 billion, well above the $870.41 million anticipated by analysts and marking a 72% increase from $640.8 million in the same quarter last year. This strong performance was primarily driven by higher egg prices amid industry supply shortages. The net average selling price per dozen eggs rose to $3.31 compared to $2.13 in the year-ago period. These recent developments underscore Cal-Maine Foods’ ability to capitalize on market conditions.
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