The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Pilgrim's Pride beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins expanded across the board.
Pilgrim's Pride reported revenue of $2.19 billion. The five analysts polled by S&P Capital IQ hoped for sales of $2.02 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $1.83 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 $0.10. The five earnings estimates compiled by S&P Capital IQ predicted -$0.06 per share. GAAP EPS were $0.09 for Q4 versus -$0.40 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 3.4%, 210 basis points better than the prior-year quarter. Operating margin was 1.4%, 270 basis points better than the prior-year quarter. Net margin was 1.0%, 570 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.98 billion. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $8.08 billion. The average EPS estimate is $0.84.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 126 members out of 200 rating the stock outperform, and 74 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Pilgrim's Pride a green thumbs-up, and 27 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pilgrim's Pride is outperform, with an average price target of $7.77.
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