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Why Is Pilgrim's Pride (PPC) Down 13.1% 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 lost about 13.1% 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 catalysts.
Pilgrim’s Pride Q4 Earnings Lag Estimates, Sales Up 3.3% Y/Y
Pilgrim’s Pride reported fourth-quarter 2025 results, wherein both top and bottom lines fell short of the Zacks Consensus Estimate. While net sales increased, earnings decreased from the year-ago period’s actuals. The company has been benefiting from its portfolio diversification strategies, operational excellence, branded offerings and key customer partnerships.
PPC’s Q4 Results in Details
Pilgrim's Pride reported adjusted earnings of 64 cents per share, missing the Zacks Consensus Estimate of 78 cents. Also, the figure decreased from adjusted earnings of $1.35 per share in the year-ago quarter. On a GAAP basis, earnings were 37 cents per share, down from 99 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 $4,517.8 million, which increased 3.3% from the year-ago quarter. However, the top line missed the consensus mark of $4,600 million.
Pilgrim's Pride’s cost of sales was $4,089.2 million, which increased from $3,818.8 million reported in the year-ago quarter. Gross profit fell year over year to $428.6 million from $553.3 million.
The company reported an adjusted EBITDA of $415.1 million, down from $525.7 million reported in the year-ago quarter. The adjusted EBITDA margin was 9.2%, a decrease from 12% reported in the prior-year quarter.
The operating income was $204.1 million, a year-over-year decrease from $306.7 million.
PPC’s Segment Analysis
Net sales in the U.S. operations were $2,598.5 million, down from $2,613.2 million in the year-ago quarter. Despite the modest decline, the Fresh portfolio benefited from continued consumer demand, with volumes increasing year over year. Demand from key customers remained solid across retail, QSR and food-service channels. Strength in Case Ready and Small Bird supported performance, while operational improvements in Big Bird mitigated the impact of softer commodity pricing. U.S. Prepared Foods net sales rose 18% from the prior year, driven by strong retail and food-service demand. Just Bare continued to gain share in the frozen fully cooked category and food-service volumes grew more than 20% year over year.
Net sales from Europe operations increased to $1,383.6 million in the quarter under review from $1,259.2 million in the prior-year quarter. The region delivered higher sales and adjusted EBITDA, supported by an improved product mix, manufacturing optimization and ongoing management integration initiatives. Branded diversification remained a key growth driver, with Fridge Raiders and Rollover again outpacing their respective categories.
Mexico operations generated net sales of $535.7 million in the reported quarter, up from $499.6 million in the prior-year quarter. However, profitability was pressured by increased imports and weaker live commodity fundamentals during the latter half of the year. Despite these headwinds, volumes improved year over year. In Fresh, key customer demand remained steady, while branded offerings grew nearly 10%. Prepared Foods sales increased 8%, reflecting continued progress in diversification efforts.
PPC’s Financial Health Snapshot
The company ended the quarter with cash and cash equivalents of $640.2 million, long-term debt (less current maturities) of $3,093.1 million and total shareholders’ equity of $3,693.7 million. The company provided $1,371.7 million in cash from operating activities for the year ended Dec. 28, 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -10.59% due to these changes.
VGM Scores
Currently, Pilgrim's Pride has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% 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
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Pilgrim's Pride has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is Pilgrim's Pride (PPC) Down 13.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Pilgrim's Pride (PPC - Free Report) . Shares have lost about 13.1% 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 catalysts.
Pilgrim’s Pride Q4 Earnings Lag Estimates, Sales Up 3.3% Y/Y
Pilgrim’s Pride reported fourth-quarter 2025 results, wherein both top and bottom lines fell short of the Zacks Consensus Estimate. While net sales increased, earnings decreased from the year-ago period’s actuals. The company has been benefiting from its portfolio diversification strategies, operational excellence, branded offerings and key customer partnerships.
PPC’s Q4 Results in Details
Pilgrim's Pride reported adjusted earnings of 64 cents per share, missing the Zacks Consensus Estimate of 78 cents. Also, the figure decreased from adjusted earnings of $1.35 per share in the year-ago quarter. On a GAAP basis, earnings were 37 cents per share, down from 99 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 $4,517.8 million, which increased 3.3% from the year-ago quarter. However, the top line missed the consensus mark of $4,600 million.
Pilgrim's Pride’s cost of sales was $4,089.2 million, which increased from $3,818.8 million reported in the year-ago quarter. Gross profit fell year over year to $428.6 million from $553.3 million.
The company reported an adjusted EBITDA of $415.1 million, down from $525.7 million reported in the year-ago quarter. The adjusted EBITDA margin was 9.2%, a decrease from 12% reported in the prior-year quarter.
The operating income was $204.1 million, a year-over-year decrease from $306.7 million.
PPC’s Segment Analysis
Net sales in the U.S. operations were $2,598.5 million, down from $2,613.2 million in the year-ago quarter. Despite the modest decline, the Fresh portfolio benefited from continued consumer demand, with volumes increasing year over year. Demand from key customers remained solid across retail, QSR and food-service channels. Strength in Case Ready and Small Bird supported performance, while operational improvements in Big Bird mitigated the impact of softer commodity pricing. U.S. Prepared Foods net sales rose 18% from the prior year, driven by strong retail and food-service demand. Just Bare continued to gain share in the frozen fully cooked category and food-service volumes grew more than 20% year over year.
Net sales from Europe operations increased to $1,383.6 million in the quarter under review from $1,259.2 million in the prior-year quarter. The region delivered higher sales and adjusted EBITDA, supported by an improved product mix, manufacturing optimization and ongoing management integration initiatives. Branded diversification remained a key growth driver, with Fridge Raiders and Rollover again outpacing their respective categories.
Mexico operations generated net sales of $535.7 million in the reported quarter, up from $499.6 million in the prior-year quarter. However, profitability was pressured by increased imports and weaker live commodity fundamentals during the latter half of the year. Despite these headwinds, volumes improved year over year. In Fresh, key customer demand remained steady, while branded offerings grew nearly 10%. Prepared Foods sales increased 8%, reflecting continued progress in diversification efforts.
PPC’s Financial Health Snapshot
The company ended the quarter with cash and cash equivalents of $640.2 million, long-term debt (less current maturities) of $3,093.1 million and total shareholders’ equity of $3,693.7 million. The company provided $1,371.7 million in cash from operating activities for the year ended Dec. 28, 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -10.59% due to these changes.
VGM Scores
Currently, Pilgrim's Pride has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% 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
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Pilgrim's Pride has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.