The 10-second takeaway
For the quarter ended June 24 (Q2), Pilgrim's missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share improved.
Margins improved across the board.
Pilgrim's reported revenue of $1.97 billion. The four analysts polled by S&P Capital IQ expected sales of $2.04 billion on the same basis. GAAP reported sales were 2.7% higher than the prior-year quarter's $1.92 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 $0.27. The four earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. GAAP EPS were $0.27 for Q2 compared to -$0.57 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 7.3%, 960 basis points better than the prior-year quarter. Operating margin was 5.0%, 1,000 basis points better than the prior-year quarter. Net margin was 3.5%, 1,020 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.01 billion. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $7.97 billion. The average EPS estimate is $0.65.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 127 members out of 211 rating the stock outperform, and 84 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Pilgrim's a green thumbs-up, and 34 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pilgrim's is hold, with an average price target of $8.50.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.