It has been about a month since the last earnings report for Pilgrim's Pride (PPC Quick QuotePPC - Free Report) . Shares have added about 10.2% 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 the most recent earnings report in order to get a better handle on the important drivers.

Pilgrim's Pride Q2 Earnings Top Estimates, Sales Up Y/Y

Pilgrim’s Pride reported impressive second-quarter 2024 results, with the top and bottom lines increasing from the year-ago quarter. Also, the company’s earnings surpassed the Zacks Consensus Estimate. The company’s portfolio diversification strategies, operational excellence, branded offerings and key customer partnerships have been driving growth.

Q2 in Detail

PPC reported adjusted earnings of $1.67 per share, surpassing the Zacks Consensus Estimate of $1.32. Also, the bottom line increased from adjusted earnings of 44 cents in the year-ago quarter. On a GAAP basis, earnings came in at $1.37 per share, up from 25 cents in the year-ago period.

The producer, marketer and distributor of fresh, frozen, and value-added chicken and pork products generated net sales of $4,559.3 million, which increased 5.8% from the year-ago quarter.

Net sales in the U.S. operations were $2.66 billion, up 8.9% from $2.45 billion in the year-ago quarter. Management highlighted that enhanced commodity cutout values, production efficiencies and lower input costs drove this growth. Segments like Big Bird, Case Ready and Small Bird outperformed the market with customized offerings to key customers. Innovation in Prepared Foods also expanded marketplace presence through branded, value-added items across retail and food service sectors.

Mexico operations generated net sales of $593.8 million in the reported quarter, up 7.7% from $551.1 million in the prior-year quarter. Pilgrim's Pride’s Mexico business witnessed improved performance through a balanced supply and demand environment, increased sales with Key customers in retail and foodservice, and the momentum of branded Fresh and Prepared offerings. 

Net sales from Europe operations declined 0.7% to $1.30 billion in the quarter under review from $1.31 billion in the prior year. However, the region’s agility and operational excellence enabled rapid adjustments to consumer preferences and needs.

Pilgrim's Pride’s cost of sales decreased 4% to $3.87 million from $4.03 million in the year-ago quarter. Gross profit jumped year over year to $691.6 million from $278.4 million. 

The company reported an adjusted EBITDA of $655.9 million, up 163.7% from the year-ago quarter. The adjusted operating margin increased 860 bps year over year to 14.4% in the quarter under review.

Other Financial Details

Pilgrim’s Pride ended the quarter with cash and cash equivalents of $1.32 billion, long-term debt (less current maturities) of $3.18 billion and total shareholders’ equity of $3.75 billion. The company provided $989.7 million in cash from operating activities for the six months ended Jun 30, 2024.

Pilgrim’s Pride’s focus on key customers is a pathway for refining its portfolio and creating competitive advantages over its peers.

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.