The 10-second takeaway
For the quarter ended Dec. 25 (Q4), Pilgrim's missed slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Pilgrim's reported revenue of $1.83 billion. The five analysts polled by S&P Capital IQ predicted revenue of $1.86 billion on the same basis. GAAP reported sales were 1.0% higher than the prior-year quarter's $1.81 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.40. The five earnings estimates compiled by S&P Capital IQ forecast -$0.31 per share. GAAP EPS were -$0.40 for Q4 versus $0.20 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 1.1%, 590 basis points worse than the prior-year quarter. Operating margin was -1.6%, 570 basis points worse than the prior-year quarter. Net margin was -4.7%, 700 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.89 billion. On the bottom line, the average EPS estimate is -$0.14.
Next year's average estimate for revenue is $7.70 billion. The average EPS estimate is $0.29.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 127 members out of 203 rating the stock outperform, and 77 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Pilgrim's a green thumbs-up, and 31 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pilgrim's is outperform, with an average price target of $7.00.
Over the decades, small-cap stocks, like Pilgrim's have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Pilgrim's to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.