Pilgrim's Pride Corporation ( PPC Quick Quote PPC - Free Report) is likely to register a decline in the bottom line when it reports fourth-quarter 2022 earnings on Feb 8. The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past 30 days at breakeven. The projection indicates a significant decline from the year-ago quarter’s reported figure of 56 cents. Pilgrim's Pride has a trailing four-quarter earnings surprise of 46.1%, on average. This chicken and pork product company reported an earnings surprise of 25.3% in the last reported quarter. Factors to Consider
Pilgrim's Pride has been grappling with an increased cost of sales for a while. In the third quarter of 2022, Pilgrim's Pride’s cost of sales increased to $3,972 million from the $3,455.7 million reported in the year-ago quarter. The persistence of this trend is a concern for the company.
In the third quarter of 2022, PPC’s Mexico business saw softness in overall sales and profitability due to seasonality and weakened market conditions. Its Mexico business was hurt by major inflation and slowing demand. Further, issues with mortality in live operations led to the downside. Any continuation of these downsides might have hurt the company’s performance in the quarter under review. That being said, the company’s business investments to accelerate organic growth, mainly with key customers, bode well. What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Pilgrim's Pride this time. The combination of a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. Pilgrim's Pride has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Performance Food Group Company ( PFGC Quick Quote PFGC - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter 2022 earnings is pegged at 76 cents, calling for 33.3% growth from the year-ago period figure. PFGC has a trailing four-quarter earnings surprise of 15.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here. The consensus mark for Performance Food’s top line is pegged at $13.9 billion, suggesting growth of 8.4% from the prior-year quarter’s reported figure. Freshpet, Inc. ( FRPT Quick Quote FRPT - Free Report) is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. FRPT has an Earnings ESP of +2.04% and a Zacks Rank #3. The Zacks Consensus Estimate for Freshpet’s bottom line has remained unchanged at a loss of 8 cents in the past 30 days, indicating 61.9% growth from the year-ago period reported figure. FRPT has a trailing four-quarter negative earnings surprise of roughly 88%, on average. The consensus mark for Freshpet’s top line is pegged at $151.1 million, calling for growth of 30.4% from the prior-year quarter’s reported figure. Kellogg Company ( K Quick Quote K - Free Report) currently has an Earnings ESP of +4.12% and a Zacks Rank of 3. K is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers. The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.7 billion, calling for growth of nearly 7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.