We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Pilgrim's Pride (PPC) Earnings Disappoint Again in Q2?
Read MoreHide Full Article
Diversified food company Pilgrim's Pride Corporation (PPC - Free Report) is scheduled to report second-quarter 2016 results on Jul 28, after the closing bell. Pilgrim’s Pride is engaged in production, distribution and sale of frozen, fresh and value-added chicken products to various foodservice operators, distributors and retailers.
In the trailing four quarters, the company reported average negative earnings surprise of 14.65%. Let’s see how things are shaping up prior to this announcement.
Factors at Play
Pilgrims Pride reported weak results in the last reported quarter. The downside was attributable to negatives like outbreak of Avian Flu, high volatility in consumers’ brand loyalty, lower-than-expected wage increase, high income inequality in the U.S., as well as lackluster economic performance in emerging markets. Factors like these might continue to hurt the company’s results in the to-be-reported quarter.
However, the company remains on track with its impressive growth initiatives to mitigate the aforesaid risks. In sync with the increasing demand for organic and Associated British Foods plc (ABF) certified products, Pilgrim’s Pride recently started offering USDA-certified organic chicken from one of its facilities. This strategic move is expected to support the company’s sales growth. Also, its diversified product portfolio, operational excellence and robust marketing strategies are expected to boost results in the second quarter.
Share price of the company as of Jul 22, 2016 was $25.19 per share. We expect the release of second-quarter results to lead to stock price movement in the near term.
Our proven model does not conclusively show that Pilgrim's Pride is likely to beat earnings in the quarter to-be-reported quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. That is not the case here as we will see below.
Zacks ESP: Pilgrim's Pride has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 65 cents.
Zacks Rank: Pilgrim's Pride carries a Zacks Rank #5 (Strong Sell).
Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Callaway Golf Co. with an Earnings ESP of +12.12% and a Zacks Rank #1.
Boyd Gaming Corporation (BYD - Free Report) with an Earnings ESP of +3.33% and a Zacks Rank #2.
Vail Resorts Inc. (MTN - Free Report) with an Earnings ESP of +1.21% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Pilgrim's Pride (PPC) Earnings Disappoint Again in Q2?
Diversified food company Pilgrim's Pride Corporation (PPC - Free Report) is scheduled to report second-quarter 2016 results on Jul 28, after the closing bell. Pilgrim’s Pride is engaged in production, distribution and sale of frozen, fresh and value-added chicken products to various foodservice operators, distributors and retailers.
In the trailing four quarters, the company reported average negative earnings surprise of 14.65%. Let’s see how things are shaping up prior to this announcement.
Factors at Play
Pilgrims Pride reported weak results in the last reported quarter. The downside was attributable to negatives like outbreak of Avian Flu, high volatility in consumers’ brand loyalty, lower-than-expected wage increase, high income inequality in the U.S., as well as lackluster economic performance in emerging markets. Factors like these might continue to hurt the company’s results in the to-be-reported quarter.
However, the company remains on track with its impressive growth initiatives to mitigate the aforesaid risks. In sync with the increasing demand for organic and Associated British Foods plc (ABF) certified products, Pilgrim’s Pride recently started offering USDA-certified organic chicken from one of its facilities. This strategic move is expected to support the company’s sales growth. Also, its diversified product portfolio, operational excellence and robust marketing strategies are expected to boost results in the second quarter.
Share price of the company as of Jul 22, 2016 was $25.19 per share. We expect the release of second-quarter results to lead to stock price movement in the near term.
PILGRIMS PRIDE Price and EPS Surprise
PILGRIMS PRIDE Price and EPS Surprise | PILGRIMS PRIDE Quote
Earnings Whispers
Our proven model does not conclusively show that Pilgrim's Pride is likely to beat earnings in the quarter to-be-reported quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. That is not the case here as we will see below.
Zacks ESP: Pilgrim's Pride has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 65 cents.
Zacks Rank: Pilgrim's Pride carries a Zacks Rank #5 (Strong Sell).
Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Callaway Golf Co. with an Earnings ESP of +12.12% and a Zacks Rank #1.
Boyd Gaming Corporation (BYD - Free Report) with an Earnings ESP of +3.33% and a Zacks Rank #2.
Vail Resorts Inc. (MTN - Free Report) with an Earnings ESP of +1.21% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>