Q3 Rundown: Cal-Maine (NASDAQ:CALM) Vs Other Consumer Staples Stocks

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the consumer staples stocks, including Cal-Maine (NASDAQ:CALM) and its peers.

The consumer staples industry comprises companies engaged in the manufacturing, distribution, and sale of essential, everyday products. These products, also known as "staples," are fundamental to daily living and include packaged food, beverages and alcohol, personal care, and household products. Consumer staples stocks are considered defensive investments because consumers often purchase them regardless of economic conditions. To stand out, companies must have some combination of brand recognition, product quality, and price competitiveness.

The 13 consumer staples stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 0.6%.

Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.

In light of this news, consumer staples stocks have held steady with share prices up 1% on average since the latest earnings results.

Cal-Maine (NASDAQ:CALM)

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.

Cal-Maine reported revenues of $785.9 million, up 71.1% year on year. This print exceeded analysts’ expectations by 11.5%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ earnings estimates.

Sherman Miller, president and chief executive officer of Cal-Maine Foods, stated, “Our financial and operating results for the first quarter mark a strong start to fiscal 2025 for Cal-Maine Foods. These results reflect favorable demand for shell eggs during most of the quarter and significantly higher market prices compared with the first quarter last year. At the same time, the national egg supply has declined due to the recent outbreaks of highly pathogenic avian influenza (“HPAI”).

Cal-Maine scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 16.6% since reporting and currently trades at $89.60.

Read our full report on Cal-Maine here, it’s free.

Best Q3: Coca-Cola (NYSE:KO)

A pioneer and behemoth in carbonated soft drinks, The Coca-Cola Company (NYSE:KO) is a storied beverage company best known for its flagship soda of the same name.

Coca-Cola reported revenues of $11.95 billion, flat year on year, outperforming analysts’ expectations by 2.9%. The business had a strong quarter with an impressive beat of analysts’ organic revenue growth estimates and a narrow beat of analysts’ earnings estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.1% since reporting. It currently trades at $68.

Is now the time to buy Coca-Cola? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Conagra (NYSE:CAG)

Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE:CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.

Conagra reported revenues of $2.79 billion, down 3.8% year on year, falling short of analysts’ expectations by 1.6%. It was a softer quarter as it posted a miss of analysts’ organic revenue growth and EBITDA estimates.

As expected, the stock is down 10.3% since the results and currently trades at $29.33.

Read our full analysis of Conagra’s results here.

WD-40 (NASDAQ:WDFC)

Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ:WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

WD-40 reported revenues of $156 million, up 11.1% year on year. This number topped analysts’ expectations by 4.6%. However, it was a slower quarter as it produced a miss of analysts’ EBITDA estimates and underwhelming earnings guidance for the full year.

The stock is flat since reporting and currently trades at $264.19.

Read our full, actionable report on WD-40 here, it’s free.

Constellation Brands (NYSE:STZ)

With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Constellation Brands reported revenues of $2.92 billion, up 2.9% year on year. This number was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue growth estimates.

The stock is down 5.7% since reporting and currently trades at $241.01.

Read our full, actionable report on Constellation Brands here, it’s free.

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