PPC Earnings Prediction
The chart below shows how PPC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PPC sees a -2.87% change in stock price 10 days leading up to the earnings, and a +5.54% change 10 days following the report. On the earnings day itself, the stock moves by +0.51%. This data can give you a slight idea of what to expect for the next quarter's release.
PPC Key Earning Data
2024/Q4
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PPC Earnings Analysis
Pilgrims Pride Corporation Corporation (PPC.O) Earnings Conference Call
Positive
Revenue Increase Q3 2024: 1. Significant Revenue Growth: Pilgrim's Pride reported net revenues of $4.6 billion for Q3 2024, marking a 5.2% increase compared to the same quarter last year.
Adjusted EBITDA Surge: 2. Strong Adjusted EBITDA Performance: The company achieved an adjusted EBITDA of $660 million, a substantial increase from $324 million in Q3 2023, resulting in an adjusted EBITDA margin of 14.4% compared to 7.4% last year.
US Sales Growth: 3. Improved US Market Performance: The US segment experienced a year-over-year sales growth of approximately 12%, driven by higher commodity chicken pricing and growth with key customers in Case Ready and Small Bird categories.
Brand Sales Increase: 4. Robust Brand Growth: Sales of Pilgrim's branded offerings increased by 7% year-over-year, with notable growth in the Just Bare brand, which saw sales rise nearly 30% from the previous quarter.
Cash and Liquidity Strength: 5. Strong Cash Position: As of the end of Q3, Pilgrim's Pride had nearly $3 billion in total cash and available credit, providing significant liquidity and flexibility for future growth initiatives.
Negative
Mexico Revenue Decline: 1. Decline in Mexico Revenues: Mexico's revenues decreased year-over-year due to a drop in market pricing for chicken, reflecting typical seasonal trends and hurricane disruptions.
Hurricane-Related Financial Impact: 2. Increased Charges Due to Hurricane: The company incurred $8 million in charges related to inventory lost during Hurricane Helene, alongside an anticipated additional $14 million charge in Q4 for pension plan settlements.
European Restructuring Charges: 3. Restructuring Costs in Europe: Pilgrim's Pride recorded approximately $30.8 million in restructuring charges in Europe during Q3, indicating ongoing costs associated with network optimization and administrative reorganization efforts.
Declining EBITDA Margins: 4. Lower Adjusted EBITDA Margins in Mexico: Adjusted EBITDA margins in Mexico fell to 9.7% in Q3 from 12.4% a year ago, primarily due to normal seasonal trends affecting demand.
Production Challenges and Mortality: 5. Production Challenges and Mortality Rates: Despite improvements in hatchability, the industry continues to face challenges with higher mortality rates, which have hindered production growth and contributed to a gap between chicks placed and actual slaughter numbers.
PPC FAQs
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PPC Earning Call Sentiment
Pilgrim's Pride Corporation (PPC) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
PPC.O
1.58%Positive
The earnings call summary reflects strong financial performance, with net revenues and EBITDA showing significant growth. Despite some challenges like market volatility in Mexico and restructuring costs in Europe, the company has a robust balance sheet, allowing for share repurchases. The Q&A reveals positive sentiment with sustainable profitability and strong demand in key markets. While there are risks, such as production challenges and potential input cost volatility, overall guidance remains optimistic. The company's strategic focus on growth and shareholder returns further supports a positive stock price outlook in the near term.