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Pilgrim's Pride (PPC) Down 6.8% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Pilgrim's Pride Corporation (PPC - Free Report) . Shares have lost about 6.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? 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 Misses on Q1 Earnings, Tops Revenues
Pilgrim's Pride reported mixed first-quarter 2017 results.
The company's quarterly earnings of $0.38 per share missed the Zacks Consensus Estimate of $0.43. Additionally, the figure is lower than the year-ago tally of $0.46 per share.
However, the quarterly bottom-line performance improved 35.7% sequentially.
Revenues: In the reported quarter, Pilgrim's Pride generated net revenue of $2,020.5 million, up 2.9% year over year. The top line also surpassed the Zacks Consensus Estimate of $2,014 million.
Revenues from the company's U.S. operations, which account for nearly 85.9% of the total revenue, climbed 4% year over year. Revenues from the Mexican business - 14.1% of the total revenue - were down 2.9% year over year.
The quarterly top-line performance improved 5.9% sequentially.
Costs/Margins: Pilgrim's Pride's cost of sales increased 4.6% year over year to $1,805.3 million. Gross margin contracted 140 basis points (bps) year over year to 10.7%.
Selling, general and administrative expenses advanced 28.8% year over year to $62.9 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin came in at 10.1%, down 180 bps year over year.
Balance Sheet/Cash Flow: Pilgrim's Pride exited the quarter with cash and cash equivalents of approximately $30.8 million, down from $120.3 million at the end of 2016. Long-term debt (net of current portion) was $1,347 million as against $1,011.9 million as of Dec 25, 2016.
In the reported quarter, the company generated $61.5 million of cash from its operating activities, down 66.9% year over year. Capital spending totaled $114.5 million compared to $37.1 million incurred in the year-ago quarter.
Outlook: Pilgrim's Pride is well poised to boost its near-term profitability on the back of a well-balanced product portfolio. The company also believes that the advanced product offerings under GNP Company's brands would increase its market demand in the quarters ahead. Also, the capital investments programs are anticipated to generate benefits moving ahead.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.
At this time, Pilgrim's Pride's stock has a nice Growth Score of 'B', while its Momentum is doing a bit better with 'A'. Charting an exact same path, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value and momentum investors than those looking for growth.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Pilgrim's Pride (PPC) Down 6.8% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Pilgrim's Pride Corporation (PPC - Free Report) . Shares have lost about 6.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? 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 Misses on Q1 Earnings, Tops Revenues
Pilgrim's Pride reported mixed first-quarter 2017 results.
The company's quarterly earnings of $0.38 per share missed the Zacks Consensus Estimate of $0.43. Additionally, the figure is lower than the year-ago tally of $0.46 per share.
However, the quarterly bottom-line performance improved 35.7% sequentially.
Revenues: In the reported quarter, Pilgrim's Pride generated net revenue of $2,020.5 million, up 2.9% year over year. The top line also surpassed the Zacks Consensus Estimate of $2,014 million.
Revenues from the company's U.S. operations, which account for nearly 85.9% of the total revenue, climbed 4% year over year. Revenues from the Mexican business - 14.1% of the total revenue - were down 2.9% year over year.
The quarterly top-line performance improved 5.9% sequentially.
Costs/Margins: Pilgrim's Pride's cost of sales increased 4.6% year over year to $1,805.3 million. Gross margin contracted 140 basis points (bps) year over year to 10.7%.
Selling, general and administrative expenses advanced 28.8% year over year to $62.9 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin came in at 10.1%, down 180 bps year over year.
Balance Sheet/Cash Flow: Pilgrim's Pride exited the quarter with cash and cash equivalents of approximately $30.8 million, down from $120.3 million at the end of 2016. Long-term debt (net of current portion) was $1,347 million as against $1,011.9 million as of Dec 25, 2016.
In the reported quarter, the company generated $61.5 million of cash from its operating activities, down 66.9% year over year. Capital spending totaled $114.5 million compared to $37.1 million incurred in the year-ago quarter.
Outlook: Pilgrim's Pride is well poised to boost its near-term profitability on the back of a well-balanced product portfolio. The company also believes that the advanced product offerings under GNP Company's brands would increase its market demand in the quarters ahead. Also, the capital investments programs are anticipated to generate benefits moving ahead.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.
Pilgrim's Pride Corporation Price and Consensus
Pilgrim's Pride Corporation Price and Consensus | Pilgrim's Pride Corporation Quote
VGM Scores
At this time, Pilgrim's Pride's stock has a nice Growth Score of 'B', while its Momentum is doing a bit better with 'A'. Charting an exact same path, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value and momentum investors than those looking for growth.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.