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Pilgrim's Pride Q4 Earnings Beat Estimates, Sales Decline Y/Y
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Pilgrim’s Pride Corporation (PPC - Free Report) reported fourth-quarter 2024 results, wherein the bottom line increased year over year and beat the Zacks Consensus Estimate, while net sales decreased. The company benefited from its portfolio diversification strategies, operational excellence, branded offerings and key customer partnerships.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
PPC’s Q4 Results in Detail
Pilgrim's Pride reported adjusted earnings of $1.35 per share, surpassing the Zacks Consensus Estimate of $1.13. Also, the figure increased from adjusted earnings of 59 cents per share in the year-ago quarter. On a GAAP basis, earnings were 99 cents per share, up from 57 cents in the year-ago period.
Pilgrim's Pride Corporation Price, Consensus and EPS Surprise
The producer, marketer and distributor of fresh, frozen and value-added chicken and pork products generated net sales of $4,372.1 million, which decreased 3.5% from the year-ago quarter.
Pilgrim's Pride’s cost of sales was $3,818.8 million, which decreased from $4,207.3 million reported in the year-ago quarter. Gross profit jumped year over year to $553.3 million from $321 million.
The company reported an adjusted EBITDA of $525.7 million, up from $309.5 million reported in the year-ago quarter. The adjusted EBITDA margin was 12%, an expansion from 6.8% reported in the prior-year quarter.
The operating income was $306.7 million, a year-over-year increase from $184.3 million.
PPC’s Segment Analysis
Net sales in the U.S. operations were $2,613.2 million, down from $2,660.6 million in the year-ago quarter. Management noted that the U.S. segment continued to execute its strategies, supported by strong demand for chicken in both retail and food-service channels. The Big Bird category benefited from production improvements and favorable seasonal-market pricing.
Meanwhile, Case Ready and Small Bird segments experienced growth, driven by increased consumer demand in retail, QSR and deli channels. In addition, Prepared Foods sustained sales momentum by expanding the distribution of its value-added product portfolio. Diversification efforts through branded offerings continued to progress, with net sales of Just Bare rising 35% and Pilgrim’s increasing 16% year over year.
Mexico operations generated net sales of $499.6 million in the reported quarter, down from $526.6 million in the prior-year quarter. Despite the decline, commodity markets showed counter-seasonal trends and strengthened throughout the quarter. Sales in the fresh category grew nearly 10% year over year, driven by strong contributions from key customers. The Merida complex ramped up production, supporting growth, while the company continued investing in additional capacity in the region. Moreover, diversification efforts gained momentum, with value-added products expanding their reach across retail, club and food-service channels.
Net sales from Europe operations declined to $1259.2 million in the quarter under review from $1,341.1 million in the prior year. However, Europe achieved an improvement of more than 100 basis points year over year, driven by enhancements in product mix and manufacturing productivity. These gains were further supported by diversification through branded offerings and increased consumer acceptance of newly launched innovations. Notably, Fridge Raiders and Rollover outpaced category growth, indicating strong brand performance.
PPC’s Financial Health Snapshot
The company ended the quarter with cash and cash equivalents of $2,040.8 million, long-term debt (less current maturities) of $3,206.1 million and total shareholders’ equity of $4,253.4 million. The company provided $1,990.1 million in cash from operating activities for the year ended Dec. 29, 2024.
This Zacks Rank #1 (Strong Buy) stock has gained 9.8% in the past month against the industry’s 8.3% decline.
Image Source: Zacks Investment Research
3 Other Food Stocks to Consider
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural Foods’ current financial-year sales and earnings implies growth of 0.3% and 442.9%, respectively, from the year-ago period’s reported figure. UNFI delivered a trailing four-quarter earnings surprise of 553.1%, on average.
Freshpet Inc. (FRPT - Free Report) manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently has a Zacks Rank #2 (Buy). FRPT delivered a trailing four-quarter earnings surprise of 144.5%, on average.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 27.2% and 227.1%, respectively, from the prior-year reported levels.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It currently carries a Zacks Rank #2. TSN delivered a trailing four-quarter earnings surprise of 52%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales and earnings indicates growth of 1% and 22.6%, respectively, from the prior-year reported levels.
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Pilgrim's Pride Q4 Earnings Beat Estimates, Sales Decline Y/Y
Pilgrim’s Pride Corporation (PPC - Free Report) reported fourth-quarter 2024 results, wherein the bottom line increased year over year and beat the Zacks Consensus Estimate, while net sales decreased. The company benefited from its portfolio diversification strategies, operational excellence, branded offerings and key customer partnerships.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
PPC’s Q4 Results in Detail
Pilgrim's Pride reported adjusted earnings of $1.35 per share, surpassing the Zacks Consensus Estimate of $1.13. Also, the figure increased from adjusted earnings of 59 cents per share in the year-ago quarter. On a GAAP basis, earnings were 99 cents per share, up from 57 cents in the year-ago period.
Pilgrim's Pride Corporation Price, Consensus and EPS Surprise
Pilgrim's Pride Corporation price-consensus-eps-surprise-chart | Pilgrim's Pride Corporation Quote
The producer, marketer and distributor of fresh, frozen and value-added chicken and pork products generated net sales of $4,372.1 million, which decreased 3.5% from the year-ago quarter.
Pilgrim's Pride’s cost of sales was $3,818.8 million, which decreased from $4,207.3 million reported in the year-ago quarter. Gross profit jumped year over year to $553.3 million from $321 million.
The company reported an adjusted EBITDA of $525.7 million, up from $309.5 million reported in the year-ago quarter. The adjusted EBITDA margin was 12%, an expansion from 6.8% reported in the prior-year quarter.
The operating income was $306.7 million, a year-over-year increase from $184.3 million.
PPC’s Segment Analysis
Net sales in the U.S. operations were $2,613.2 million, down from $2,660.6 million in the year-ago quarter. Management noted that the U.S. segment continued to execute its strategies, supported by strong demand for chicken in both retail and food-service channels. The Big Bird category benefited from production improvements and favorable seasonal-market pricing.
Meanwhile, Case Ready and Small Bird segments experienced growth, driven by increased consumer demand in retail, QSR and deli channels. In addition, Prepared Foods sustained sales momentum by expanding the distribution of its value-added product portfolio. Diversification efforts through branded offerings continued to progress, with net sales of Just Bare rising 35% and Pilgrim’s increasing 16% year over year.
Mexico operations generated net sales of $499.6 million in the reported quarter, down from $526.6 million in the prior-year quarter. Despite the decline, commodity markets showed counter-seasonal trends and strengthened throughout the quarter. Sales in the fresh category grew nearly 10% year over year, driven by strong contributions from key customers. The Merida complex ramped up production, supporting growth, while the company continued investing in additional capacity in the region. Moreover, diversification efforts gained momentum, with value-added products expanding their reach across retail, club and food-service channels.
Net sales from Europe operations declined to $1259.2 million in the quarter under review from $1,341.1 million in the prior year. However, Europe achieved an improvement of more than 100 basis points year over year, driven by enhancements in product mix and manufacturing productivity. These gains were further supported by diversification through branded offerings and increased consumer acceptance of newly launched innovations. Notably, Fridge Raiders and Rollover outpaced category growth, indicating strong brand performance.
PPC’s Financial Health Snapshot
The company ended the quarter with cash and cash equivalents of $2,040.8 million, long-term debt (less current maturities) of $3,206.1 million and total shareholders’ equity of $4,253.4 million. The company provided $1,990.1 million in cash from operating activities for the year ended Dec. 29, 2024.
This Zacks Rank #1 (Strong Buy) stock has gained 9.8% in the past month against the industry’s 8.3% decline.
Image Source: Zacks Investment Research
3 Other Food Stocks to Consider
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural Foods’ current financial-year sales and earnings implies growth of 0.3% and 442.9%, respectively, from the year-ago period’s reported figure. UNFI delivered a trailing four-quarter earnings surprise of 553.1%, on average.
Freshpet Inc. (FRPT - Free Report) manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently has a Zacks Rank #2 (Buy). FRPT delivered a trailing four-quarter earnings surprise of 144.5%, on average.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 27.2% and 227.1%, respectively, from the prior-year reported levels.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It currently carries a Zacks Rank #2. TSN delivered a trailing four-quarter earnings surprise of 52%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales and earnings indicates growth of 1% and 22.6%, respectively, from the prior-year reported levels.