Pilgrim's Pride Plucked Itself

Exactly 2 years after Pilgrim's Pride Corporation (PPC - Snapshot Report) announced a billion-dollar buyout of a main rival, the largest chicken producer in the U.S. has filed for Chapter 11 bankruptcy protection. Shares of PPC, which had been trading over the $15 mark until about mid-2008, fell off a cliff this past September and dropped an additional 46% this morning on a day of drastic bloodletting in the overall markets.

Pilgrim's Pride had posted a June quarter positive earnings surprise, but followed this up with negative guidance, largely reflecting on higher input costs like corn feed and fuel. It has yet to post September quarter numbers, but its Zacks Estimates page finds earnings growth estimates at -441% for the quarter, and -108% for the December term.

The Texas-based company's 3rd and latest credit extension was set to expire today. The company also announced it is seeking "debtor-in-possession" financing from Bank of Montreal (BMO - Snapshot Report) for a total of $450 million.

Read the full analyst report on PPC