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Pilgrim's Pride (PPC) to Report Q4 Earnings: Things to Note
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Pilgrim's Pride Corporation (PPC - Free Report) is likely to report growth in the bottom line when it releases fourth-quarter 2020 results. The Zacks Consensus Estimate for the bottom line has remained stable in the past 30 days at 34 cents per share, which indicates substantial growth from the year-ago quarter’s reported figure of 14 cents.
However, this producer, processer, marketer and distributor of fresh, frozen and value-added chicken and pork products has a trailing four-quarter negative earnings surprise of 7.6%, on average.
Pilgrims Pride Corporation Price, Consensus and EPS Surprise
Pilgrim's Pride is gaining from the sturdy European business. During the third quarter of 2020, revenues from European operations surged 63.4% year over year to $845.7 million, driven by robust retail demand that helped the company negate adverse impacts of lower foodservice business amid COVID-19. Also, better operational efficiencies and solid pork exports to China have been significant upsides. Moreover, improved momentum from the recently acquired European pork assets has been aiding.
Apart from these, the company’s focus on refining its portfolio alongside creating competitive advantages, especially amid the coronavirus-led disruptions, bodes well. Additionally, the company has been steadily augmenting the marketing support of its brands, as they expand and enter new regions. The company also resorts to frequent supply-chain improvements to enhance efficiency and reduce costs. In this respect, it has been progressing well with developing automation technology for its processing plants.
However, the company has been grappling with increased cost of sales for the past few quarters. Also, lower demand for foodservice products and commodity pricing volatility amid the COVID-19 pandemic have been concerning for the company’s U.S. operations. Notably, the large bird deboning category was especially challenged during the last reported quarter. Although the company is seeing a rebound in demand with impressive growth in the retail and quick-service restaurant (or QSR) business, volatility and a challenging environment in commodity segments are persistent concerns.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Pilgrim's Pride this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pilgrim's Pride currently has a Zacks Rank #1 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
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 season.
Newell Brands (NWL - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank #3, currently.
Monster Beverage (MNST - Free Report) has an Earnings ESP of +21.81% and a Zacks Rank #3, at present.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time. See 8 breakthrough stocks now>>
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Pilgrim's Pride (PPC) to Report Q4 Earnings: Things to Note
Pilgrim's Pride Corporation (PPC - Free Report) is likely to report growth in the bottom line when it releases fourth-quarter 2020 results. The Zacks Consensus Estimate for the bottom line has remained stable in the past 30 days at 34 cents per share, which indicates substantial growth from the year-ago quarter’s reported figure of 14 cents.
However, this producer, processer, marketer and distributor of fresh, frozen and value-added chicken and pork products has a trailing four-quarter negative earnings surprise of 7.6%, on average.
Pilgrims Pride Corporation Price, Consensus and EPS Surprise
Pilgrims Pride Corporation price-consensus-eps-surprise-chart | Pilgrims Pride Corporation Quote
Key Factors to Note
Pilgrim's Pride is gaining from the sturdy European business. During the third quarter of 2020, revenues from European operations surged 63.4% year over year to $845.7 million, driven by robust retail demand that helped the company negate adverse impacts of lower foodservice business amid COVID-19. Also, better operational efficiencies and solid pork exports to China have been significant upsides. Moreover, improved momentum from the recently acquired European pork assets has been aiding.
Apart from these, the company’s focus on refining its portfolio alongside creating competitive advantages, especially amid the coronavirus-led disruptions, bodes well. Additionally, the company has been steadily augmenting the marketing support of its brands, as they expand and enter new regions. The company also resorts to frequent supply-chain improvements to enhance efficiency and reduce costs. In this respect, it has been progressing well with developing automation technology for its processing plants.
However, the company has been grappling with increased cost of sales for the past few quarters. Also, lower demand for foodservice products and commodity pricing volatility amid the COVID-19 pandemic have been concerning for the company’s U.S. operations. Notably, the large bird deboning category was especially challenged during the last reported quarter. Although the company is seeing a rebound in demand with impressive growth in the retail and quick-service restaurant (or QSR) business, volatility and a challenging environment in commodity segments are persistent concerns.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Pilgrim's Pride this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pilgrim's Pride currently has a Zacks Rank #1 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
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 season.
Service Corporation (SCI - Free Report) currently has an Earnings ESP of +3.68% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Newell Brands (NWL - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank #3, currently.
Monster Beverage (MNST - Free Report) has an Earnings ESP of +21.81% and a Zacks Rank #3, at present.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>