Pilgrims Pride Q3 profit and EBITDA miss estimates on compressed margins
Overview
U.S. poultry producer's Q3 sales were a slight beat of analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Adjusted EBITDA for Q3 missed analyst expectations
Outlook
Company says it will continue investments and strategies to drive profitable growth
Pilgrims expects new prepared foods facility in Georgia to be commissioned in H2 2027
Company anticipates closing Walkers Deli & Sausage acquisition in early 2027
Result Drivers
PRODUCT MIX AND EFFICIENCY - Co said differentiated product mix and improved operational efficiency helped offset lower commodity values in U.S. Fresh segment
PREPARED FOODS GROWTH - Co said U.S. Prepared Foods segment saw volume rise over 15% year-on-year, led by Just Bare brand
EUROPE STABILITY AND CHALLENGES - Co said Europe segment sales and volumes were stable due to affordability, but margins compressed from input cost inflation and excess pork imports
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Beat* | $4.65 bln | $4.63 bln (5 Analysts) |
Q3 Adjusted EPS | Miss | $0.49 | $0.56 (4 Analysts) |
Q3 EPS | $0.49 | ||
Q3 Adjusted EBITDA | Miss | $316.30 mln | $345.60 mln (5 Analysts) |
Q3 Adjusted EBITDA Margin | 6.80% | ||
Q3 Operating Income | $191.50 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy."
Wall Street's median 12-month price target for Pilgrims Pride Corp is $30.00, about 10.7% above its October 27 closing price of $27.09
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)