Core Insights - Pilgrim's Pride reported a decrease in profit despite an increase in sales, indicating a shift in consumer preference towards chicken as a more affordable protein option compared to other sources [1] Company Summary - The latest quarter showed that Pilgrim's Pride experienced higher sales figures, yet the profit margins were lower [1] - The consumer trend of favoring chicken over pricier protein alternatives has been a significant factor influencing the company's financial performance [1] Industry Summary - The poultry industry is witnessing a shift in consumer behavior, with chicken being preferred due to its cost-effectiveness [1] - This trend may impact pricing strategies and profit margins across the protein sector as consumers seek more affordable options [1]

Core Insights - Pilgrim's Pride Corporation reported a net sales increase of 3.8% year-over-year for Q3 2025, reaching $4.76 billion, while net income decreased slightly by 2.0% to $343.1 million [3][6][18] - The company maintained strong performance in the U.S. market, driven by robust chicken demand and strategic investments in key customer relationships [4][5][6] - Adjusted EBITDA for Q3 2025 was $633.1 million, reflecting a 4.1% decrease from the previous year, with an adjusted EBITDA margin of 13.3% [3][6][23] Financial Performance - Net sales for the nine months ended September 28, 2025, were $13.98 billion, up 3.5% from $13.51 billion in the prior year [3] - U.S. GAAP EPS for Q3 2025 was $1.44, down from $1.47 in Q3 2024, while adjusted EPS increased to $1.52 from $1.47 [3][6] - Operating income for Q3 2025 was $492.6 million, a decrease of 3.1% compared to $508.4 million in Q3 2024 [3][6] Market Dynamics - Chicken demand remained strong across retail and foodservice sectors, attributed to its value proposition compared to other proteins [4][5] - The company reported significant growth in its Prepared Foods segment, with net sales increasing over 25% compared to the previous year [6] - Pilgrim's Pride is focusing on diversifying its portfolio and enhancing customer relationships through innovation and quality [5][6] Strategic Initiatives - The company plans to invest over $500 million in the U.S. over the next two years to support growth and diversify its product offerings [6][10] - In Europe, Pilgrim's Pride is reinforcing key customer relationships and driving innovation, with notable growth in brands like Fridge Raiders® and Rollover® [8][9] - Sustainability efforts are a critical component of the company's strategy, with a reported 23% reduction in Scope 1 & 2 emissions intensity since 2019 [10][11] Operational Highlights - The U.S. Fresh segment performed strongly due to a diversified portfolio and operational excellence, while the Prepared Foods segment continues to expand [6][10] - The company reported a consolidated GAAP operating income margin of 10.4% for Q3 2025 [6] - Pilgrim's Pride's liquidity position remains strong, with net leverage approximately 1.0 times adjusted EBITDA [6][10]

Core Insights - Pilgrim's Pride Corporation (PPC) is expected to report a decrease in earnings for Q3 2025, with the Zacks Consensus Estimate dropping from $1.46 to $1.41, indicating a 13.5% decline year-over-year [1][8] Factors Impacting Earnings - The export business of Pilgrim's Pride is facing challenges due to lower broiler volumes, trade restrictions, and weaker international demand, compounded by ongoing tariffs from China [2] - Margin pressures in key markets, particularly in Mexico, are due to foreign exchange volatility and disease impacts, leading to lower profitability compared to the previous year [3] - Input cost risks from grain and soybean meal prices, along with rising marketing, R&D, and labor expenses, are inflating overall costs [3] - Consumer behavior changes linked to inflation are resulting in reduced spending and smaller basket sizes, contributing to a challenging earnings environment [4] Positive Aspects - Despite the challenges, there is resilient consumer demand for chicken as a cost-effective protein, particularly in the U.S. and Europe [5] - The company's branded portfolio, including products like Just Bare, is gaining traction, and its Case Ready and Prepared Foods segments are expanding distribution [5] - Foodservice trends favor PPC, as quick-service restaurants are increasingly offering chicken-based menu items to cater to value-conscious consumers [5] Earnings Prediction Insights - The current model does not predict an earnings beat for Pilgrim's Pride, as it holds a Zacks Rank of 5 (Strong Sell) and an Earnings ESP of 0.00% [6]

Company Performance - Pilgrim's Pride (PPC) stock decreased by 1.39% to $37.61, underperforming the S&P 500's daily gain of 0.58% [1] - The stock has declined by 7.67% over the past month, while the Consumer Staples sector gained 1% and the S&P 500 increased by 0.16% [1] Upcoming Earnings - The earnings report for Pilgrim's Pride is scheduled for October 29, 2025, with an expected EPS of $1.41, reflecting a 13.5% decrease from the same quarter last year [2] Annual Forecast - Zacks Consensus Estimates predict annual earnings of $5.21 per share and revenue of $0 million, indicating a -3.87% change in earnings and no change in revenue compared to the previous year [3] Analyst Estimates - Recent changes in analyst estimates for Pilgrim's Pride suggest a correlation with stock price performance, with positive revisions indicating analyst optimism [4][5] - The Zacks Consensus EPS estimate has decreased by 3.87% in the past month, and Pilgrim's Pride currently holds a Zacks Rank of 5 (Strong Sell) [5] Valuation Metrics - Pilgrim's Pride has a Forward P/E ratio of 7.32, which is lower than the industry average Forward P/E of 11.41 [6] - The Food - Meat Products industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 231, placing it in the bottom 7% of over 250 industries [6][7]

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].