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Why Is Pilgrim's Pride (PPC) Up 6.5% Since Last Earnings Report?

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It has been about a month since the last earnings report for Pilgrim's Pride (PPC - Free Report) . Shares have added about 6.5% 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 catalysts.

Pilgrim's Pride Q4 Earnings Beat Estimates, Rise Y/Y

Pilgrim’s Pride reported decent fourth-quarter 2023 results, with the top and the bottom line increasing from the year-ago quarter’s level. The company’s earnings surpassed the Zacks Consensus Estimate.

Results gained from growth across all regions. Pilgrim’s Pride’s portfolio diversification strategies, operational excellence, branded offerings and Key Customer partnerships have been driving growth.

Q4 in Detail

PPC reported adjusted earnings of 59 cents per share, surpassing the Zacks Consensus Estimate of 42 cents. The bottom line improved from a loss of 49 cents 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 $4,528.3 million, which increased 9.7% from the year-ago quarter’s level. Net sales rose across all regions.

Net sales in U.S. operations were $2,660.6 million, up from $2,430.3 million reported in the year-ago quarter. Management highlighted that it gained from the continued momentum on the back of promotional activity and new distribution with Key Customers in Case Ready and Small Bird. The company saw growth in the Retail and Foodservice business in Prepared Foods, along with enhanced operations in Big Bird.

Mexico operations generated net sales of $526.6 million in the reported quarter, up from $462.4 million in the prior-year quarter. Pilgrim's Pride’s Mexico business generated improved results amid weakened market conditions. The region gained from robust brand offerings and a greater presence with Key Customers.

Net sales from the U.K. and Europe operations rose to $1,341.1 million in the quarter under review from $1,234.6 million in the prior-year quarter. The company’s U.K. and Europe businesses gained from robust branded offerings, network and back-office optimization and improved Key Customer relationships.

Pilgrim's Pride’s cost of sales increased to $4,207.3 million from $4,031.6 million reported in the year-ago quarter. Gross profit jumped to $321 million from $95.8 million. Adjusted EBITDA of $309.5 million increased from $62.9 million reported in the year-ago quarter. Adjusted EBITDA margin of 6.8% expanded from 1.5% reported in the year-ago quarter.

Other Financial Details

The company ended the quarter with cash and cash equivalents of $697.7 million, long-term debt (less current maturities) of $3,340.8 million and total shareholders’ equity of $3,344.6 million. The company provided $677.9 million in cash from operating activities for the year ended Dec 31, 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.


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