It has been about a month since the last earnings report for Pilgrim's Pride (PPC Quick QuotePPC - Free Report) . Shares have added about 6.7% in that time frame, underperforming 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 catalysts.

Pilgrim's Pride Q3 Earnings Beat Estimates, Decline Y/Y

Pilgrim’s Pride reported third-quarter 2023 results, with the top and bottom lines deteriorating from the year-ago quarter. Nevertheless, Pilgrim’s Pride’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

Pilgrim’s Pride 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.

Other Financial Details

This company ended the quarter with cash and cash equivalents of $899.5 million, a 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.

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.