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Pilgrim's Pride (PPC) Q3 Earnings Beat Estimates, Decline Y/Y
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Pilgrim’s Pride Corporation (PPC - Free Report) reported third-quarter 2023 results, with the top and bottom lines deteriorating from the year-ago quarter’s level. Nevertheless, PPC’s earnings surpassed the Zacks Consensus Estimate.
Pilgrim’s Pride has been bearing the brunt of persistent inflation and dynamic market conditions. That said, its portfolio diversification strategies, operational excellence, branded offerings and Key Customer partnerships have been driving growth. The company is on track with expansion projects in the Athens, GA, facility and protein conversion plant in South Georgia.
Q3 in Detail
PPC reported adjusted earnings of 58 cents per share, surpassing the Zacks Consensus Estimate of 51 cents. However, the bottom line deteriorated from earnings of $1.09 per share reported in the year-ago quarter.
The producer, marketer and distributor of fresh, frozen and value-added chicken and pork products generated net sales of $4,360.2 million, which declined 2.4% from the year-ago quarter’s level. Net sales fell in the U.S. operations, with challenges in the commodity segment.
Net sales in the U.S. operations were $2,488.3 million, down from $2,836.9 million reported in the year-ago quarter. Management highlighted that it gained from improved market fundamentals in the Big Bird business and solid performance in the Small Bird business. The company saw momentum for branded fully-cooked products like Just Bare and Pilgrim’s, which collectively grew 65% year over year.
Mexico operations generated net sales of $559.7 million in the reported quarter, up from $429 million in the prior-year quarter. Pilgrim's Pride’s Mexico business witnessed solid performance with improvements in live operations and balanced market fundamentals. Pilgrim’s’ retail offerings increased in double digits on a year-over-year basis.
Net sales from the U.K. and Europe operations rose to $1,312.2 million in the quarter under review from $1,203.1 million in the prior year quarter. The company’s U.K. and Europe businesses gained from its manufacturing network optimization program’s efficiency, strength in Key Customers, synergies from back-office integration and recovery of inflationary costs.
Pilgrim's Pride’s cost of sales increased to $4,014.3 million from $3,971.7 million reported in the year-ago quarter. Gross profit slumped to $345.9 million from $497.3 million. Adjusted EBITDA of $324 million declined from $460.5 million reported in the year-ago quarter. Adjusted EBITDA margin of 7.4% contracted from 10.3% reported in the year-ago quarter.
Pilgrim's Pride Corporation Price, Consensus and EPS Surprise
This Zacks Rank #1 (Strong Buy) company ended the quarter with cash and cash equivalents of $899.5 million, long-term debt (less current maturities) of $3,701.5 million and total shareholders’ equity of $3,091.2 million. The company provided $399.6 million in cash from operating activities for the nine months ended Sep 24, 2023.
Shares of Pilgrim's Pride have decreased by 0.9% in the past three months compared with the industry’s 27.5% decline.
Inter Parfums manufactures, markets and distributes a range of fragrances and fragrance-related products. The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales and earnings indicates 19.7% and 14.9% growth from their respective year-ago reported figures. IPAR has a trailing four-quarter earnings surprise of 45.9%, on average.
Post Holdings is a consumer-packaged goods holding company. POST has a trailing four-quarter earnings surprise of 59.6%, on average. The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings suggests growth of 13.2% and 189.9%, respectively, from the year-ago reported numbers.
Grocery Outlet is a retailer of consumables and fresh products. GO has a trailing four-quarter earnings surprise of 14.3%, on average. The Zacks Consensus Estimate for GO’s current financial-year sales and EPS indicates improvements of 11.2% and 4.9%, respectively, from the year-ago reported numbers.
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Pilgrim's Pride (PPC) Q3 Earnings Beat Estimates, Decline Y/Y
Pilgrim’s Pride Corporation (PPC - Free Report) reported third-quarter 2023 results, with the top and bottom lines deteriorating from the year-ago quarter’s level. Nevertheless, PPC’s earnings surpassed the Zacks Consensus Estimate.
Pilgrim’s Pride has been bearing the brunt of persistent inflation and dynamic market conditions. That said, its portfolio diversification strategies, operational excellence, branded offerings and Key Customer partnerships have been driving growth. The company is on track with expansion projects in the Athens, GA, facility and protein conversion plant in South Georgia.
Q3 in Detail
PPC reported adjusted earnings of 58 cents per share, surpassing the Zacks Consensus Estimate of 51 cents. However, the bottom line deteriorated from earnings of $1.09 per share reported in the year-ago quarter.
The producer, marketer and distributor of fresh, frozen and value-added chicken and pork products generated net sales of $4,360.2 million, which declined 2.4% from the year-ago quarter’s level. Net sales fell in the U.S. operations, with challenges in the commodity segment.
Net sales in the U.S. operations were $2,488.3 million, down from $2,836.9 million reported in the year-ago quarter. Management highlighted that it gained from improved market fundamentals in the Big Bird business and solid performance in the Small Bird business. The company saw momentum for branded fully-cooked products like Just Bare and Pilgrim’s, which collectively grew 65% year over year.
Mexico operations generated net sales of $559.7 million in the reported quarter, up from $429 million in the prior-year quarter. Pilgrim's Pride’s Mexico business witnessed solid performance with improvements in live operations and balanced market fundamentals. Pilgrim’s’ retail offerings increased in double digits on a year-over-year basis.
Net sales from the U.K. and Europe operations rose to $1,312.2 million in the quarter under review from $1,203.1 million in the prior year quarter. The company’s U.K. and Europe businesses gained from its manufacturing network optimization program’s efficiency, strength in Key Customers, synergies from back-office integration and recovery of inflationary costs.
Pilgrim's Pride’s cost of sales increased to $4,014.3 million from $3,971.7 million reported in the year-ago quarter. Gross profit slumped to $345.9 million from $497.3 million. Adjusted EBITDA of $324 million declined from $460.5 million reported in the year-ago quarter. Adjusted EBITDA margin of 7.4% contracted from 10.3% reported in the year-ago quarter.
Pilgrim's Pride Corporation Price, Consensus and EPS Surprise
Pilgrim's Pride Corporation price-consensus-eps-surprise-chart | Pilgrim's Pride Corporation Quote
Other Financial Details
This Zacks Rank #1 (Strong Buy) company ended the quarter with cash and cash equivalents of $899.5 million, long-term debt (less current maturities) of $3,701.5 million and total shareholders’ equity of $3,091.2 million. The company provided $399.6 million in cash from operating activities for the nine months ended Sep 24, 2023.
Shares of Pilgrim's Pride have decreased by 0.9% in the past three months compared with the industry’s 27.5% decline.
Key Picks
Here, we have highlighted three other top-ranked stocks, namely Inter Parfums (IPAR - Free Report) , Post Holdings (POST - Free Report) and Grocery Outlet Holding Corp. (GO - Free Report) . While Inter Parfums sports a Zacks #1 Rank, Post Holdings and Grocery Outlet each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inter Parfums manufactures, markets and distributes a range of fragrances and fragrance-related products. The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales and earnings indicates 19.7% and 14.9% growth from their respective year-ago reported figures. IPAR has a trailing four-quarter earnings surprise of 45.9%, on average.
Post Holdings is a consumer-packaged goods holding company. POST has a trailing four-quarter earnings surprise of 59.6%, on average. The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings suggests growth of 13.2% and 189.9%, respectively, from the year-ago reported numbers.
Grocery Outlet is a retailer of consumables and fresh products. GO has a trailing four-quarter earnings surprise of 14.3%, on average. The Zacks Consensus Estimate for GO’s current financial-year sales and EPS indicates improvements of 11.2% and 4.9%, respectively, from the year-ago reported numbers.