PPC Q3 Earnings Top Estimates, U.S. Operations Drive Sales Growth

Pilgrim’s Pride Corporation PPC reported impressive third-quarter 2024 results, with the top and bottom lines increasing from the year-ago quarter. Also, the company’s earnings surpassed the Zacks Consensus Estimate.PPC reported adjusted earnings of $1.63 per share, surpassing the Zacks Consensus Estimate of $1.27. Also, the bottom line increased from adjusted earnings of 58 cents in the year-ago quarter. On a GAAP basis, earnings came in at $1.47 per share, up from 51 cents in the year-ago period.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The producer, marketer and distributor of fresh, frozen and value-added chicken and pork products generated net sales of $4,585 million, which increased 5.2% from the year-ago quarter.Pilgrim’s Pride’s results gained from operational excellence, portfolio diversification and the development of strategic partnerships with key customers to enhance consumer value. The company's focus on quality, service and innovation is evident in its third-quarter performance.Pilgrim's Pride Corporation Price, Consensus and EPS Surprise Pilgrim's Pride Corporation price-consensus-eps-surprise-chart | Pilgrim's Pride Corporation QuoteA Closer Look at PPC’s Q3 ResultsNet sales in the U.S. operations were $2,773.4 million, up from $2,488.3 million in the year-ago quarter. Management highlighted that the relative availability and affordability of chicken fueled demand across retail and food service sectors, driving growth in the region. The Case Ready and Small Bird segments grew on the back of improved demand from key customers and ongoing advancements in operational excellence. In the Big Bird category, enhanced production efficiencies, lower input costs and better commodity cutout values drove profitability. In addition, the Prepared segment continued to diversify its portfolio through expanded distribution in retail and foodservice.Mexico operations generated net sales of $503.5 million in the reported quarter, down from $559.7 million in the prior-year quarter. Pilgrim's Pride’s Mexico business continued to strengthen its presence with key customers across retail and food service while further diversifying its portfolio through various brands. The company’s investments in operational excellence aimed at building capacity and enhancing operational efficiencies remained on schedule.Net sales from Europe operations declined to $1,308.1 million in the quarter under review from $1,312.2 million in the prior year. However, Europe achieved its highest quarterly adjusted EBITDA to date, driven by ongoing progress in operational excellence, increased diversification through branded offerings and strengthened partnerships with key customers. During the quarter, management launched more than 280 new products, contributing to major momentum in the business. The company's new product pipeline has generated considerable interest in the marketplace. Richmond and Fridge Raiders brands experienced growth that outpaced category averages across the region.Pilgrim's Pride’s cost of sales stood at $3,901 million a decrease from $4,014.3 million reported in the year-ago quarter. Gross profit jumped year over year to $684 million from $345.9 million. The company reported an adjusted EBITDA of $660.4 million, up from $324 million reported in the year-ago quarter. The adjusted EBITDA margin stood at 14.4%, an expansion from 7.4% reported in the prior-year quarter’s level. The operating income came in at $508.4 million, a year-over-year increase from $206.4 million.Image Source: Zacks Investment ResearchPPC’s Financial Health SnapshotThe Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $1,878 million, long-term debt (less current maturities) of $3,184.1 million and total shareholders’ equity of $4,218.7 million. The company provided $1,640.8 million in cash from operating activities for the nine months ended Sept. 29, 2024.The company’s shares have gained 12.9% in the past three months against the industry’s 0.9% decline.Three Food Stocks Looking GoodMcCormick & Company, Inc. MKC is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. MKC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.6% and 8.2%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 13.8%, on average.United Natural Foods UNFI distributes natural, organic, specialty produce, and conventional grocery and non-food products. UNFI currently has a Zacks Rank #2(Buy).The Zacks Consensus Estimate for UNFI’s current financial-year earnings suggests significant growth from the year-ago period’s reported figure. United Natural Foods has a trailing four-quarter earnings surprise of 199.3%, on average.The Chefs' Warehouse, Inc. CHEF, together with its subsidiaries, distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. CHEF currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Chefs' Warehouse’s current quarter’s sales and earnings indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers. CHEF has a trailing four-quarter earnings surprise of nearly 33.7%, on average.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McCormick & Company, Incorporated (MKC): Free Stock Analysis Report Pilgrim's Pride Corporation (PPC): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks