Yahoo Finance Pilgrim's Pride (PPC) Down 0.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Pilgrim's Pride (PPC). Shares have lost about 0.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pilgrim's Pride due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Pilgrim's Pride Q1 Earnings Top Estimates, Sales Up Y/Y
Pilgrim’s Pride Corporation reported impressive first-quarter 2024 results, wherein the top and bottom lines increased year over year. The company’s earnings surpassed the Zacks Consensus Estimate.
The company has been witnessing growth across all regions. Its portfolio diversification strategies, operational excellence, branded offerings, efficient management of inventory and key customer partnerships have been driving growth.
Q1 in Detail
The company reported adjusted earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 60 cents. It posted adjusted earnings of 8 cents in the year-ago period. On a GAAP basis, earnings came in at 73 cents, up from 2 cents recorded in the year-ago period.
The producer, marketer and distributor of fresh, frozen and value-added chicken and pork products generated net sales of $4,361.9 million, which increased 4.7% year over year. Net sales rose across all regions.
Net sales in the U.S. operations were $2,579.3 million, up from $2,432.6 million reported in the year-ago quarter. Strengthening partnerships with key customers in the Case Ready and Small Bird segments along with improving operational excellence in big bird have been driving factors.
Mexico operations generated net sales of $1,267.9 million in the reported quarter, up from $1,239.3 million in the prior-year quarter. This improved result was driven by balanced supply and demand fundamentals in commodity markets. Also, strengthening relationships with key customers and expansion of diversified product offering helped to increase sales.
Net sales from Europe operations rose to $519.7 million from $493.8 million in the prior-year quarter. The company’s Europe businesses gained from diversification through brands, optimization of manufacturing and support activities, and additional distribution with key customers.
Pilgrim Pride’s cost of sales declined to $3,978 million from $3,992.6 million reported in the year-ago quarter. Gross profit jumped to $383.9 million from $173 million. Adjusted EBITDA of $371.9 million increased significantly from $151.9 million reported in the year-earlier quarter. Adjusted EBITDA margin of 8.5% expanded 4.9 points from 3.6% reported in the prior-year quarter.
Other Financial Details
The company ended the quarter with cash and cash equivalents of $870.8 million, long-term debt (less current maturities) of $3,342.7 million and total shareholders’ equity of $3,494.4 million. The company provided $271 million in cash from operating activities for the quarter ended Mar 31, 2024.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report
