A month has gone by since the last earnings report for Pilgrim's Pride (PPC Quick QuotePPC - Free Report) . Shares have added about 23.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Pilgrim's Pride due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Pilgrim's Pride Q2 Earnings Top Estimates, Sales Up Y/Y

Pilgrim's Pride reported impressive second-quarter 2021 results, with the top and the bottom line increasing year over year. The bottom line surpassed the Zacks Consensus Estimate. The company saw a shift to more normal patterns in the United States as retail store trips improved and greater number of foodservice locations reopened. Healthy performance across all regions, in which Pilgrim's Pride operates contributed to the results.

Keeping on track with its growth strategy, management expects to acquire Kerry Consumer Foods' Meats and Meals business in the U.K. and Ireland. The buyout will help Pilgrim's Pride solidify its position with an important value-added protein and integrated prepared foods business.

Q2 in Detail

Pilgrim's Pride reported second-quarter adjusted earnings of 63 cents a share, which improved from a loss of 1 cent posted in the year-ago quarter. The quarterly earnings surpassed the Zacks Consensus Estimate of 59 cents.

This producer, marketer and distributor of fresh, frozen as well as value-added chicken and pork products generated net sales of $3,637.7 that increased 28.8% from the year-ago quarter’s levels. Net sales increased in Mexico, the U.K. and Europe as well as the U.S. operations.

Net sales in the U.S. operations amounted to $2,248.5 million, up from $1,798.7 million reported in the year-ago quarter. Management stated that demand in the United States continues to witness rebound with foodservice business improving on a year-over-year basis as well as sequentially. The company’s Retail volumes in the region were solid. Its branded consumer packaged foods business saw significant growth on the back of investments in brands like Just Bare and Pilgrim’s across retail and in e-commerce channels. Commodity large bird deboning operation was sturdy, despite increased input costs and lower than optimal mix.

Mexican operations generated net sales of $453.4 million in the reported quarter, up from $268.1 million posted in the prior-year quarter. Management notified that better economic environment, strong execution, balanced supply/demand scenario and increased share of non-commodity products favorably impacted Mexican operations.

Net sales from the U.K. and Europe operations rose from $757.2 million to $935.8 million in the quarter under review. The company highlighted that its combined European business gained on operational improvements and rebound in foodservice volumes in the U.K., that were countered by increased feed costs as well as reduced pig pricing.

Pilgrim's Pride’s cost of sales increased to $3,257.5 million from $2,704.2 million reported in the year-ago period. Gross profit climbed from $119.9 million to $380.2 million. Adjusted EBITDA came in at $371.6 million, up significantly from $112.2 million reported in the year-ago quarter. Adjusted EBITDA margin increased from 4% to 10.2%.

Other Financial Details

Pilgrim's Pride ended the quarter with cash and cash equivalents of $391.8 million, long-term debt (less current maturities) of $2,270.3 million and total shareholders’ equity of $2,594.5 million. Further, the company generated almost $115 million as cash from operating activities for six months ended on Jun 27, 2021.

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.