It has been about a month since the last earnings report for Pilgrim's Pride (PPC Quick QuotePPC - Free Report) . Shares have lost about 18.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Pilgrim's Pride due for a breakout? 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 catalysts.

Pilgrim's Pride Q4 Earnings Beat Estimates, Sales Up Y/Y

Pilgrim's Pride reported fourth-quarter 2021 results, with the top and the bottom line increasing year over year. Earnings in the quarter surpassed the Zacks Consensus Estimate.

However, the company has been battling input cost inflation, pandemic-induced volatility, supply chain disruptions and labor shortages. That said, focus on the Customer strategy along with robust diversified portfolio are aiding.

Q4 in Detail

The company reported adjusted earnings of 56 cents a share, up from 25 cents reported in the year-ago quarter. Quarterly earnings surpassed the Zacks Consensus Estimate of 40 cents.

This producer, marketer and distributor of fresh, frozen and value-added chicken and pork products, generated net sales of $4,038.8 that increased 29.5% from the year-ago quarter’s levels. Sales reflect 20.6% organic growth and a 9.4% contribution from the acquisition of Pilgrim's Food Masters (concluded in September 2021). Net sales increased in Mexico, Europe as well as in the U.S. operations.

Net sales in the U.S. operations amounted to $2,399 million, up from $1,876.2 million reported in the year-ago quarter. Adjusted EBITDA across the U.S. region was $265 million, up from $74.9 million reported in the year-ago quarter.

Management stated that in the U.S. market, retail sales were flat year over year. In the U.S. Prepared Foods business, sales rose more than 50% and volumes jumped 7%.

Mexico operations generated net sales of $426.7 million in the reported quarter, up from $392.5 million in the prior-year quarter. Volumes across Mexico increased 3.4%. In Mexico, adjusted EBITDA was $27 million, down from $77.7 million reported in the year-ago quarter.

Net sales from Europe operations rose to $1,213 million from $849.2 million in the quarter under review. The company highlighted that its Moy Park business and poultry initiatives continue to face major cost increases and labor challenges. Apart from the pandemic-led absences, post-Brexit rules have been causing worker-related problems. In Europe, adjusted EBITDA came in at $24.7 million, down from $52.8 million reported in the year-ago quarter.

Pilgrim's Pride’s cost of sales increased to $3,686.3 million from $2,890.4 million reported in the year-ago quarter. Gross profit climbed to $352.5 million from $227.4 million. Adjusted EBITDA came in at $316.7 million, up from $205.4 million reported in the year-ago quarter. Adjusted EBITDA margin increased to 7.8% from 6.6% recorded in the prior-year quarter.

Other Financial Details

Pilgrim's Pride ended the quarter with cash and cash equivalents of $427.7 million, long-term debt (less current maturities) of $3,191.2 million and total shareholders’ equity of $2,588.9 million. The company generated $326.5 million of cash from operating activities for the year ended Dec 26, 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.