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Pilgrim's Pride (PPC) Q1 Earnings: What's in the Cards?
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Pilgrim's Pride Corporation (PPC - Free Report) is scheduled to report first-quarter 2017 on May 4.
Over the last three months, Pilgrim's Pride’s shares yielded a return of 31.41%, outperforming 2.91% growth recorded by the Zacks classified Food-Meat Products industry.
Notably, the attractiveness of this stock as a current investment choice is further accentuated by its favorable Value Growth and Momentum Style Score ‘A’.
However, the company has an average negative earnings surprise of 15.14%, missing estimates in all of the trailing four quarters. Let’s see how things are shaping up prior to this announcement.
Factors to Play
Higher demand for natural food products such as organic and Antibiotic-Free (ABF) chicken is expected to bolster Pilgrim's Pride’s revenues in the first quarter. Also, the acquisition of GNP Company (Jan 2017) is projected to drive top- and bottom-line performance in the to-be-reported quarter.
In addition, the company’s initiatives to enhance labor efficiency, optimize water usage and manage waste water methodically are anticipated to support margin expansion. Furthermore, the $270 million capital investment plan (initiated in 2016) is likely to generate benefits in the quarter to be reported.
However, input price inflations, unfavorable foreign currency translation impact, as well as stiff industry rivalry might hurt results in the first quarter.
Earnings Whispers
Our proven model does not conclusively show that Pilgrim's Pride will beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. That is not the case here as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Pilgrim's Pride currently has an Earnings ESP of 0.00%. This is because both the Zacks Consensus Estimate and the Most Accurate estimate are pegged at 41 cents.
Pilgrim's Pride Corporation Price and EPS Surprise
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Key Picks
Here are some stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Energizer Holdings, Inc. (ENR - Free Report) , with an Earnings ESP of +5.88% and a Zacks Rank #2.
Inter Parfums, Inc. (IPAR - Free Report) , with an Earnings ESP of +12.50% and a Zacks Rank #2.
Tyson Foods, Inc. (TSN - Free Report) , with an Earnings ESP of +3.77% and a Zacks Rank #2.
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Pilgrim's Pride (PPC) Q1 Earnings: What's in the Cards?
Pilgrim's Pride Corporation (PPC - Free Report) is scheduled to report first-quarter 2017 on May 4.
Over the last three months, Pilgrim's Pride’s shares yielded a return of 31.41%, outperforming 2.91% growth recorded by the Zacks classified Food-Meat Products industry.
Notably, the attractiveness of this stock as a current investment choice is further accentuated by its favorable Value Growth and Momentum Style Score ‘A’.
However, the company has an average negative earnings surprise of 15.14%, missing estimates in all of the trailing four quarters. Let’s see how things are shaping up prior to this announcement.
Factors to Play
Higher demand for natural food products such as organic and Antibiotic-Free (ABF) chicken is expected to bolster Pilgrim's Pride’s revenues in the first quarter. Also, the acquisition of GNP Company (Jan 2017) is projected to drive top- and bottom-line performance in the to-be-reported quarter.
In addition, the company’s initiatives to enhance labor efficiency, optimize water usage and manage waste water methodically are anticipated to support margin expansion. Furthermore, the $270 million capital investment plan (initiated in 2016) is likely to generate benefits in the quarter to be reported.
However, input price inflations, unfavorable foreign currency translation impact, as well as stiff industry rivalry might hurt results in the first quarter.
Earnings Whispers
Our proven model does not conclusively show that Pilgrim's Pride will beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. That is not the case here as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Pilgrim's Pride currently has an Earnings ESP of 0.00%. This is because both the Zacks Consensus Estimate and the Most Accurate estimate are pegged at 41 cents.
Pilgrim's Pride Corporation Price and EPS Surprise
Pilgrim's Pride Corporation Price and EPS Surprise | Pilgrim's Pride Corporation Quote
Zacks Rank: Pilgrim's Pride carries a favorable Zacks Rank #2. However, the company’s Earnings ESP of 0.00% makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks heree.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Key Picks
Here are some stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Energizer Holdings, Inc. (ENR - Free Report) , with an Earnings ESP of +5.88% and a Zacks Rank #2.
Inter Parfums, Inc. (IPAR - Free Report) , with an Earnings ESP of +12.50% and a Zacks Rank #2.
Tyson Foods, Inc. (TSN - Free Report) , with an Earnings ESP of +3.77% and a Zacks Rank #2.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>