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Pilgrim's Pride (PPC) Q2 Earnings Top Estimates, Sales Up Y/Y
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Pilgrim’s Pride Corporation (PPC - Free Report) 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.
Pilgrim's Pride Corporation Price, Consensus and EPS Surprise
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.
Image Source: Zacks Investment Research
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.
Shares of this Zacks Rank #2 (Buy) company have gained 14.7% in the past three months against the industry’s 1.3% decline. Pilgrim’s Pride’s focus on key customers is a pathway for refining its portfolio and creating competitive advantages over its peers.
Other Staple Bets
Here, we have highlighted three other top-ranked stocks, namely TreeHouse Foods, Inc. (THS - Free Report) , BRF Brasil Foods SA (BRFS - Free Report) and Freshpet Inc. (FRPT - Free Report) .
TreeHouse Foods, a manufacturer of packaged foods and beverages, currently sports a Zacks Rank #1 (Strong Buy). THS has a negative trailing four-quarter earnings surprise of 4.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TreeHouse Foods’ current financial year’s sales suggests a decline of 1.6% from the year-ago reported number.
BRF Brasil Foods, formerly Perdigao S.A., is a Brazil-based food company. It presently flaunts a Zacks Rank of 1. BRFS has a trailing four-quarter average earnings surprise of 82.2%.
The Zacks Consensus Estimate for BRF's current financial-year earnings and sales indicates growth of 210% and 7.5%, respectively, from the year-ago reported figures.
Freshpet is a pet food company. It has a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Freshpet’s current fiscal-year earnings and sales indicates declines of 177.1% and 25%, respectively, from the year-ago reported figures. FRPT has a trailing four-quarter average earnings surprise of 118.2%.
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Pilgrim's Pride (PPC) Q2 Earnings Top Estimates, Sales Up Y/Y
Pilgrim’s Pride Corporation (PPC - Free Report) 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.
Pilgrim's Pride Corporation Price, Consensus and EPS Surprise
Pilgrim's Pride Corporation price-consensus-eps-surprise-chart | Pilgrim's Pride Corporation Quote
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.
Image Source: Zacks Investment Research
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.
Shares of this Zacks Rank #2 (Buy) company have gained 14.7% in the past three months against the industry’s 1.3% decline. Pilgrim’s Pride’s focus on key customers is a pathway for refining its portfolio and creating competitive advantages over its peers.
Other Staple Bets
Here, we have highlighted three other top-ranked stocks, namely TreeHouse Foods, Inc. (THS - Free Report) , BRF Brasil Foods SA (BRFS - Free Report) and Freshpet Inc. (FRPT - Free Report) .
TreeHouse Foods, a manufacturer of packaged foods and beverages, currently sports a Zacks Rank #1 (Strong Buy). THS has a negative trailing four-quarter earnings surprise of 4.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TreeHouse Foods’ current financial year’s sales suggests a decline of 1.6% from the year-ago reported number.
BRF Brasil Foods, formerly Perdigao S.A., is a Brazil-based food company. It presently flaunts a Zacks Rank of 1. BRFS has a trailing four-quarter average earnings surprise of 82.2%.
The Zacks Consensus Estimate for BRF's current financial-year earnings and sales indicates growth of 210% and 7.5%, respectively, from the year-ago reported figures.
Freshpet is a pet food company. It has a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Freshpet’s current fiscal-year earnings and sales indicates declines of 177.1% and 25%, respectively, from the year-ago reported figures. FRPT has a trailing four-quarter average earnings surprise of 118.2%.