Egg company Cal-Maine Foods (NASDAQ:CALM) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter Cal-Maine reported revenues of $523.2 million, down 34.7% year on year, missing analyst expectations by 0.4%. It was a weak quarter for the company. Although Cal-Maine's sales volumes increased, the average selling price for a dozen of its conventional eggs plummeted from $2.88 in the same quarter last year to $1.46 (49% year-on-year drop). This significant headwind caused the company to miss analysts' gross margin, operating margin, and EPS estimates.

Is Cal-Maine buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Cal-Maine's revenue to decline 30.6% year on year to $692.4 million, a further deceleration on the 109% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.88 per share.

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 2 upwards revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Cal-Maine's peers in the consumer staples segment, only General Mills has so far reported results, with revenues decreasing 0.5% year on year, and beating analyst estimates by 2.7%. The stock traded up 2.9% on the results.

There has been positive sentiment among investors in the consumer staples segment, with the stocks up on average 3.4% over the last month. Cal-Maine is up 4.8% during the same time, and is heading into the earnings with analyst price target of $57.3, compared to share price of $59.4.

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