Back to top

Image: Bigstock

Factors Likely to Impact Pilgrim's Pride's (PPC) Q1 Earnings

Read MoreHide Full Article

Pilgrim’s Pride Corporation (PPC - Free Report) is scheduled to release first-quarter 2020 results on Apr 30. The company reported negative earnings surprise of 36.4% in the last reported quarter.The Zacks Consensus Estimate for first-quarter earnings has been stable at 17 cents over the past 30 days. The bottom-line projection suggests a decline of 51.4% from the year-ago quarter’s reported figure.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Key Aspects to Note

Pilgrim’s Pride has been witnessing weak macroeconomic conditions in Mexico, which led to disruptions in consumer spending along with lower demand in the region during fourth-quarter 2019. In fact, these factors dented operating profit in Mexico in the fourth quarter. Apart from this, the company has been witnessing higher wheat prices in the U.K. stemming from poor planning situations during late 2019 in Western Europe.

Nevertheless, Pilgrim’s Pride has been benefiting from strength in Prepared Foods business under Premium Pilgrims and Del Dia. These brands have been gaining from favorable consumer acceptance. Also, the company’s customer centric approach bodes well. Apart from these, expansion in the organic food space, especially fresh chicken and gluten-free products have been aiding its performance.

What the Zacks Model Unveils

Our proven model doesn’t predict an earnings beat for Pilgrim’s Pride this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Pilgrim’s Pride carries a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.

The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +1.66% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +21.06% and a Zacks Rank #2.

Kellogg Company (K - Free Report) currently has an Earnings ESP of +3.23% and a Zacks Rank of 3.

The Hottest Tech Mega-Trend of All                 

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>