GREELEY, Colo., Oct. 08, 2025 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC) announced today that it will release its third quarter 2025 financial results after the U.S. market closes on Wednesday, October 29. The company’s executives will review the results on a conference call and webcast on Thursday, October 30, 2025, at 7:00 a.m. MT (9:00 a.m. ET). Prepared remarks regarding the company’s financial and operational results will be followed by a question and answer period with the Pilgrim’s ...

Core Insights - Pilgrim's Pride (PPC) stock closed at $38.52, down 5.4% from the previous trading session, underperforming the S&P 500 which gained 0.37% [1] - The stock has decreased by 8.06% over the past month, compared to a 3.28% loss in the Consumer Staples sector and a 4.26% gain in the S&P 500 [1] Earnings Forecast - The upcoming earnings release is anticipated, with a forecasted EPS of $1.46, reflecting a 10.43% decrease from the same quarter last year [2] - For the annual period, Zacks Consensus Estimates predict earnings of $5.39 per share and revenue of $0 million, indicating changes of -0.55% and 0% respectively from the previous year [2] Analyst Estimates - Recent modifications to analyst estimates for Pilgrim's Pride are crucial for understanding near-term business trends, with positive revisions indicating optimism about the business outlook [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have generated an average annual return of +25% since 1988 [4][5] - Currently, Pilgrim's Pride holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate decreasing by 0.55% over the past month [5] Valuation Metrics - Pilgrim's Pride has a Forward P/E ratio of 7.55, which is lower than the industry average of 11.59, indicating it is trading at a discount compared to its peers [6] - The Food - Meat Products industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 208, placing it in the bottom 16% of over 250 industries [6][7]

The author has an honours degree in economics and politics with a focus on economic development. With 36 years of experience in executive management he has extensive knowledge of insurance/reinsurance, Global and Asia Pacific markets, climate change and ESG. He invests in his personal capacity.Analyst’s Disclosure:I/we have a beneficial long position in the shares of PPC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not rec ...

Core Insights - Pilgrim's Pride Corporation's Small Bird segment experienced growth due to increased demand in the quick-service restaurant (QSR) channel during Q2 2025, leading to expanded sales and margins [1][9] - The overall margins for the Small Bird segment remained strong, driven by significant demand from key QSR customers, with foodservice volumes increasing nearly 10% year-over-year [2][9] - Management highlighted the company's focus on quality, service, and innovation to meet QSR demand, positioning Small Bird products effectively in a price-sensitive market [3] Industry Trends - The chicken-focused QSRs outperformed the broader dining sector by leveraging chicken's affordability, with operators focusing on value offerings and targeted promotions to attract consumers [2] - The resilience of the Small Bird segment was crucial for Pilgrim's results amid a challenging macroeconomic environment, showcasing the strategic importance of QSRs as a stable, high-volume channel [4] Financial Performance - Pilgrim's Pride shares have declined by 6.7% over the past three months, underperforming both the industry and the broader Consumer Staples sector [5] - The company currently trades at a forward 12-month P/E ratio of 8.79, which is below the industry average of 12 and the sector average of 16.89, indicating a modest discount relative to peers [10]

Company Performance - Pilgrim's Pride (PPC) closed at $42.82, down 1.86% from the previous trading session, underperforming the S&P 500's gain of 0.47% [1] - Over the last month, the company's shares decreased by 9.05%, contrasting with the Consumer Staples sector's loss of 1.75% and the S&P 500's gain of 2.32% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $1.46, reflecting a 10.43% decline compared to the same quarter last year [2] - For the full year, the Zacks Consensus Estimates project earnings of $5.42 per share and revenue of $0 million, indicating no change from the previous year [2] Analyst Forecasts - Recent revisions to analyst forecasts for Pilgrim's Pride are important as they reflect short-term business trends, with positive revisions indicating optimism about the business outlook [3] Valuation Metrics - Pilgrim's Pride is currently trading with a Forward P/E ratio of 8.05, which is lower than the industry average Forward P/E of 12.13, suggesting the company is trading at a discount [6] - The Food - Meat Products industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 195, placing it in the bottom 22% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have generated an average annual return of +25% since 1988 [5] - Currently, Pilgrim's Pride holds a Zacks Rank of 3 (Hold), with no change in the Zacks Consensus EPS estimate over the past month [5]

Core Viewpoint - Pilgrim's Pride Corporation reported solid second-quarter 2025 results, with both earnings and sales increasing year-over-year, benefiting from operational excellence and strategic partnerships [2][3]. Financial Performance - Adjusted earnings per share reached $1.70, up from $1.67 in the previous year, exceeding the Zacks Consensus Estimate of $1.54 [3]. - Net sales increased by 4.3% year-over-year to $4,757.4 million, driven by favorable commodity pricing and growth in U.S. and European markets [3]. - Gross profit rose to $715.3 million from $691.6 million, while operating income climbed 16.2% year-over-year to $512.3 million [3]. Segment Analysis - **U.S. Operations**: Net revenue increased to $2,820.4 million, with adjusted operating income at $413.5 million and margins expanding to 14.7% [5]. - **Europe Operations**: Revenue grew to $1,371.3 million, with adjusted operating income improving to $73.9 million, attributed to cost reduction and operational efficiencies [6]. - **Mexico Operations**: Net revenue decreased to $565.7 million due to currency pressures, but adjusted operating income remained at $86.9 million with margins of 15.4% [6]. Financial Health - The company ended the quarter with cash and cash equivalents of $849 million, long-term debt of $3,114.3 million, and total shareholders' equity of $3,752.5 million [7]. - Cash from operating activities for the six months ended June 29, 2025, was $622.1 million [7]. Analyst Sentiment - Analysts have not issued any earnings estimate revisions in the past two months, indicating a stable outlook [8]. VGM Scores - Pilgrim's Pride holds a strong Growth Score of A, a Momentum Score of A, and a Value Score of A, placing it in the top quintile for value investors [9][10]. Outlook - The company has a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [11].

Financial Data and Key Metrics Changes - Net profit for FY 25 reached $58.5 million, exceeding the guided range of $55 to $58 million, reflecting a strong performance [2] - Earnings per share increased by 61%, driven by share buybacks [2] - EBITDA margin improved to 24% from 21% in the previous year, primarily due to price growth across the portfolio [3] - Gearing decreased significantly from 34.8% to 27.5%, attributed to strong operating cash flows [3][22] Business Line Data and Key Metrics Changes - Sales volume increased by approximately 11% to 2,768, with settlements up by 9% [4] - The company reported a strong contracts on hand position of $612 million as of June 25, up from $481 million a year ago [4][30] - The land bank activation rate stands at 71%, indicating a high percentage of land bank within active projects [4][13] Market Data and Key Metrics Changes - Australia is experiencing strong population growth of 1.7%, driven by overseas migration, alongside a chronic housing shortage of 400,000 dwellings [5][6] - Low vacancy rates in major capitals and an improving borrowing environment for customers are noted [6][7] - The company is well-positioned to leverage favorable market conditions, with strong appetite for capital in the Australian residential sector [7] Company Strategy and Development Direction - The company is undergoing a strategic review to capitalize on favorable market dynamics, with Goldman Sachs appointed to lead the review [9][10] - Strategic pillars remain focused on master plan communities, townhouses, and low-rise apartments, with geographic diversity across the portfolio [12] - The company aims to strengthen its position and unlock value for future growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium-term outlook, citing macro factors such as population growth and housing supply constraints as supportive of growth [32][33] - The company anticipates continued strong operating cash flows and earnings growth in FY 26 [33] Other Important Information - The company declared a final dividend of 5¢ per share, totaling 7.75¢ for the year [2] - The buyback program has reduced shares on issue by around 4% since its inception [25] Q&A Session Summary Question: Is a potential outcome of the strategic review a sale of the company? - Management clarified that while the market is strong, the intent of the strategic review is to ensure optimal positioning and not to shop the company around [34][35] Question: When do you expect to get the results of the strategic review? - The strategic review is underway, with an update expected at the AGM scheduled for later in November [36] Question: How do you think of 2026 cash generation and reinvestment needs? - Strong cash flow is expected, but there will be a need for reinvestment to sustain ongoing settlements [38][39] Question: Any updates on the University of Canberra project? - The project is progressing well, with first sales anticipated in FY 28 [40][41] Question: How do sales activity in Victoria and ACT compare to last year? - Sales in Victoria increased from 7% to 10%, while ACT saw a rise from zero to approximately 70-80 sales [42][43] Question: Guidance on operating cash flow for FY 2026? - Operating cash flows are expected to remain strong, but timing of settlements will impact the figures [45][46] Question: What percentage of current presales is expected to settle in FY 2026? - A high percentage of lots currently under contract is expected to settle in FY 26 [48]

Financial Performance - FY25 Net Operating Profit was $58.5 million, up 60% on FY24[8] - Operating Earnings per Share were 12.48 cents, up 61% on FY24[8] - FY25 Dividends Per Share (DPS) were 7.75 cents, up 82% on FY24[8] - Book NTA per share increased by 5% from $1.31 in FY24 to $1.37 in FY25[8, 57] - Group revenue increased by 39% from $314.4 million in FY24 to $437.3 million in FY25[53] Operational Highlights - 2,768 lots were sold in FY25[10] - 2,642 lots were settled in FY25[12] - Contracts on hand value reached $612 million[13] - The company's gearing was 27.5% at 30 June 2025[8] Strategic Initiatives - A strategic review has commenced to ensure the business is optimally positioned to capitalize on favorable market dynamics[25] - The company aims to unlock short-term and long-term value through the strategic review[27] Land Bank and Future Projects - The company has a pipeline of 30,785 lots with an end value of $13.2 billion[33] - The company plans to launch new projects in FY26 and FY27, including communities and townhouse/apartment sites, with a total GDV of $3.928 billion across 5,944 lots/units[89]

Core Insights - Pilgrim's Pride Corporation has significantly increased its focus on e-commerce, with digitally enabled sales rising over 26% year over year in Q2 2025 [1][10] - The company's flagship brands, Just Bare and Pilgrim's, are key contributors to its growth, with Just Bare capturing over 10% market share in fully cooked chicken [2][10] - Pilgrim's Pride is aligning its strategies with modern consumer buying habits by enhancing product visibility through partnerships with leading retailers and food service providers [3][10] Industry Trends - The online grocery market continues to expand, particularly in fresh and prepared food categories, which positions Pilgrim's Pride to benefit from the shift in consumer protein purchases to online channels [4] - The company's digital marketing efforts and brand strength are indicative of a modern approach to business growth beyond traditional sales channels [3] Financial Performance - Pilgrim's Pride shares have gained 10.6% in the past month, outperforming the industry growth of 2.9% and the broader Consumer Staples sector's growth of 0.4% [5] - The stock currently trades at a forward 12-month P/E ratio of 10.08, which is below the industry average of 12.53 and the sector average of 17.22, indicating a modest discount relative to peers [8]

Financial Performance - Pilgrim's Pride reported non-GAAP EPS of $1.70, exceeding the consensus estimate of $1.57, and GAAP revenue of $4.76 billion, surpassing estimates of $4.62 billion, marking a 4.3% increase from $4.56 billion in Q2 FY2024 [1][2] - Adjusted EBITDA reached $687 million, with a stable margin of 14.4%, while GAAP operating income increased by 16.2% to $512.3 million compared to the previous year [8][10] - A special dividend of $500 million was approved, reflecting strong liquidity and financial flexibility, with net leverage remaining under one times adjusted EBITDA [10][16] Business Overview - Pilgrim's Pride is a leading global poultry company, focusing on fresh, value-added, and prepared chicken products across the U.S., Europe, Mexico, and over 120 export markets [3] - The company employs approximately 62,200 people and operates 49 hatcheries, 35 feed mills, 39 processing plants, and 29 distribution centers [3] Operational Highlights - The U.S. segment saw GAAP net sales rise by 5.9% to $2.82 billion, with operating income increasing by 15.3% to $354.99 million [5] - Prepared Foods category experienced over 20% sales growth, with the Just Bare brand achieving over 10% market share in fully cooked chicken [5][11] - In Europe, GAAP revenue improved by 5.4% to $1.37 billion, with operating income margin expanding from 4.7% to 5.4% [6][12] - Mexico faced challenges with a revenue decline of 4.7% to $565.7 million, attributed to currency headwinds and tough year-ago comparisons, although chicken volumes shipped increased by over 5% [7][13] Strategic Focus - Recent strategies emphasize product and geographic diversification, margin improvement, and operational efficiency [4] - The company maintains control over costs, particularly feed, and focuses on expanding sales of higher-margin prepared foods [4][14] - Vertical integration remains a key feature, allowing the company to manage costs and respond to consumer and regulatory changes effectively [14] Future Outlook - Management reiterated a focus on capital discipline and long-term investment in high-growth prepared foods and international markets, with capital spending targeted at $750 million for FY2025 [15] - No formal new financial guidance was issued, but ongoing monitoring of commodity costs and market conditions in Mexico is advised [16]