Back to top

Image: Bigstock

Why Is Pilgrim's Pride (PPC) Down 7.9% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for Pilgrim's Pride (PPC - Free Report) . Shares have lost about 7.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Pilgrim's Pride 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 drivers.

Pilgrim’s Pride Q2 Earnings Beat Estimates, Sales Up 4.3%

Pilgrim’s Pride Corporation delivered solid second-quarter 2025 results, with both top and bottom lines increasing from the year-ago quarter. Also, the company’s earnings surpassed the Zacks Consensus Estimate. Pilgrim’s Pride benefited from its portfolio diversification strategies, operational excellence, branded offerings and key customer partnerships.

Pilgrim’s Pride’s Q2 Results in Detail

Pilgrim’s Pride reported adjusted earnings of $1.70 per share, up from $1.67 in the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.54.

Net sales for the quarter rose 4.3% year over year to $4,757.4 million, supported by favorable commodity market pricing and growth in the U.S. and Europe business.

Gross profit increased to $715.3 million from $691.6 million last year. Operating income climbed 16.2% year over year to $512.3 million.

Adjusted EBITDA grew to $686.9 million from $655.9 million, with margins steady at 14.4%.

Pilgrim’s Pride’s Segment Analysis

U.S. Operations: Net revenue rose to $2,820.4 million, benefiting from commodity tailwinds in the Big Bird business and higher sales with key retail and foodservice customers. Adjusted operating income reached $413.5 million, with margins expanding to 14.7%.

Europe Operations: Revenue grew to $1,371.3 million, with adjusted operating income improving to $73.9 million. Management credited ongoing cost reduction initiatives, operational efficiencies, and branded portfolio strength.

Mexico Operations: Net revenue decreased to $565.7 million, though profitability was pressured by currency headwinds. Still, adjusted operating income stood at $86.9 million, with margins of 15.4%, reflecting operational discipline.

Pilgrim’s Pride’s Financial Health Snapshot

The company ended the quarter with cash and cash equivalents of $849 million, long-term debt (less current maturities) of $3,114.3 million and total shareholders’ equity of $3,752.5 million. The company provided $622.1 million in cash from operating activities for the six months ended June 29, 2025.

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.

VGM Scores

At this time, Pilgrim's Pride has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.

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.

Outlook

Pilgrim's Pride has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Pilgrim's Pride Corporation (PPC) - free report >>

Published in