Yahoo Finance Pilgrim’s Pride Declared Its Special Dividend and Its 1Q16 Results
Yesterday’s Consumer Pops and Drops: HAR, SEE, and OSK
Price movement
Pilgrim’s Pride (PPC) has a market cap of $6.6 billion. PPC rose by 12.4% to close at $26.40 per share as of April 28, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 11.7%, 4.1%, and 19.5%, respectively, on the day.
This means that PPC is trading 5.9% above its 20-day moving average, 7.9% above its 50-day moving average, and 20.3% above its 200-day moving average.
Related ETF and peers
The AdvisorShares TrimTabs Float Shrink ETF (TTFS) invests 1.3% of its holdings in Pilgrim’s Pride. The ETF aims to outperform the broad US equities. The actively managed, equal-weighted fund selects stocks based on trends in outstanding shares, firm leverage, and free cash flow. The YTD price movement of TTFS was 4.7% as of April 27, 2016.
The market caps of Pilgrim’s Pride competitors are as follows:
Hormel Foods (HRL): $20.6 billion
Industrias Bachoco S.A.B. de CV-ADR (IBA): $2.5 billion
Sanderson Farms (SAFM): $2.0 billion
Performance of Pilgrim’s Pride in fiscal 1Q16
Pilgrim’s Pride (PPC) reported fiscal 1Q16 net sales of $1,962.9 million, a fall of 4.4% compared to net sales of $2,052.9 million in fiscal 1Q15. The company’s cost of sales as a percentage of net sales rose by 7.7% and its operating income fell by 42.4% in fiscal 1Q16 compared to fiscal 1Q15. It reported foreign currency transactions of $235,000 in fiscal 1Q16, compared to -$9.0 million in fiscal 1Q15.
Its net income and EPS (earnings per share) fell to $118.4 million and $0.46, respectively, in fiscal 1Q16, compared to $204.2 million and $0.79, respectively, in fiscal 1Q15.
Pilgrim’s Pride’s cash and cash equivalents rose by 30.8%, and its inventories fell by 2.9% in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio rose to 2.3x and its debt-to-equity ratio fell to 1.5x in fiscal 1Q16, compared to a current ratio and a debt-to-equity ratio of 2.1x and 1.6x, respectively, in fiscal 4Q15.
The company declared a special cash dividend of $2.75 per share to improve its capital structure and generate shareholder value. The total value of the special dividend will be ~$700 million, based on current shares outstanding. The special cash dividend will be paid on May 18, 2016, to shareholders of record at the close of business on May 10, 2016.
In the final part of this series, we’ll look at Sanderson Farms.
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