The 10-second takeaway
For the quarter ended March 25 (Q1), Pilgrim's missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased.
Margins increased across the board.
Pilgrim's booked revenue of $1.89 billion. The four analysts polled by S&P Capital IQ wanted to see revenue of $1.92 billion on the same basis. GAAP reported sales were 0.2% lower than the prior-year quarter's $1.89 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 $0.19. The four earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. GAAP EPS were $0.18 for Q1 against -$0.56 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 5.8%, 860 basis points better than the prior-year quarter. Operating margin was 3.4%, 900 basis points better than the prior-year quarter. Net margin was 2.1%, 850 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.00 billion. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $7.83 billion. The average EPS estimate is $0.69.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 128 members out of 206 rating the stock outperform, and 78 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Pilgrim's a green thumbs-up, and 29 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 $7.58.
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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.