Chicken producer Pilgrim’s Pride (NASDAQ: PPC) will be reporting results this Wednesday afternoon. Here’s what to look for.
Pilgrim's Pride beat analysts’ revenue expectations last quarter, reporting revenues of $4.52 billion, up 3.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
Is Pilgrim's Pride a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Pilgrim's Pride’s revenue to decline 1% year on year, a reversal from the 2.3% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Pilgrim's Pride has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Pilgrim's Pride’s peers in the consumer staples segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Cal-Maine’s revenues decreased 53% year on year, beating analysts’ expectations by 3.8%, and Lamb Weston reported revenues up 2.9%, topping estimates by 5.2%. Cal-Maine traded down 1.3% following the results while Lamb Weston was also down 6.9%.
Read our full analysis of Cal-Maine’s results here and Lamb Weston’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 4.1% on average over the last month. Pilgrim's Pride is down 10.4% during the same time and is heading into earnings with an average analyst price target of $42.86 (compared to the current share price of $33.56).
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