Why Is Pilgrim's Pride (PPC) Down 1.4% Since Last Earnings Report?

Core Viewpoint - Pilgrim's Pride Corporation reported mixed results in its Q3 2025 earnings, with revenue growth but a decline in earnings per share, leading to questions about future performance [3][4]. Financial Performance - Adjusted earnings per share for Q3 were $1.52, down from $1.63 in the previous year, but exceeded the Zacks Consensus Estimate of $1.41 [4]. - Net sales increased by 3.8% year over year to $4,759.3 million, driven by favorable commodity pricing and growth in various regions [4]. - Gross profit decreased to $659.4 million from $684 million last year, with operating income at $492.6 million and adjusted EBITDA at $633.1 million, reflecting a margin of 13.3% compared to 14.4% in the prior year [5]. Segment Analysis - U.S. Operations: Revenue rose 2.3% to $2,836.6 million, with an adjusted EBITDA margin of 16.9%, down from 18% [6]. - Europe Operations: Net sales increased by 6.5% to $1,392.5 million, with an adjusted EBITDA margin of 7.9%, down from 8.6% [6]. - Mexico Operations: Revenue grew by 5.3% to $530.2 million, with an adjusted EBITDA margin of 8.2%, down from 9.7% due to production challenges [7]. Financial Health - The company ended the quarter with cash and cash equivalents of $612.6 million, long-term debt of $3,091.7 million, and total shareholders' equity of $3,555.7 million [8]. - Cash from operating activities for the nine months ended September 28, 2025, was $1,080.4 million [8]. Analyst Sentiment - There have been no earnings estimate revisions from analysts in the past two months, indicating a period of stability in expectations [9]. Investment Scores - Pilgrim's Pride holds a strong Growth Score of A, a Momentum Score of B, and a Value Score of A, placing it in the top 20% for the value investment strategy [10][11]. Outlook - The company has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the coming months [12].