NASDAQ$PPC

Pilgrim's Pride · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Pilgrim's Pride reported a decrease in net sales but improved financial performance across all regions due to operational excellence and portfolio diversification.

Pilgrim's Pride reported Q2 2023 results with $4.3 billion in net sales and operating income of $100.3 million. The company saw improvements in financial performance across all regions driven by operational excellence efforts, portfolio diversification, and growth with key customers.

  • Net Sales reached $4.3 billion.
  • GAAP Net Income was $60.9 million with a GAAP EPS of $0.25.
  • Adjusted EPS stood at $0.44, with Adjusted Net Income of $105.3 million.
  • Consolidated GAAP operating income margin was 2.3%.

Headline financials

Total Revenue

$4.31B

Previous: $4.63B-7.0%
EPS (adj)

$0.44

Previous: $1.54-71.4%
Adjusted EBITDA

$249M

Previous: $623M-60.1%
Adjusted EBITDA Margin

5.8%

Previous: 13.5%-57.0%
Capital Expenditures

-$287M

Previous: -$196M-46.1%
Free Cash Flow

-$226M

Previous: $166M-236.3%
Net Income

$60.5M

Previous: $362M-83.3%
Operating Income

$100M

Previous: $513M-80.5%
Gross Profit

$278M

Previous: $677M-58.9%
Cash & Equivalents

$731M

Previous: $682M+7.2%
Total Assets

$9.92B

Previous: $9.32B+6.4%
Stock-Based Comp

$2.1M

Previous: $2.38M-11.9%

Revenue & EPS history

Pilgrim's Pride · Revenue · Quarterly

$4.31B

Q2 2023-7%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Pilgrim's is focused on investment in automation, expansion at the Athens, Georgia facility, and construction of a new protein conversion plant in South Georgia. The company also continues to make progress in Sustainability.

Tailwinds

  • Margins significantly improved from the first quarter despite continuing challenges in the market conditions of the commodity Big Bird segment, given an intense focus on our operational excellence efforts.
  • Case Ready and Small Bird maintained steady performance while cultivating promotional activity and growth with Key Customers.
  • Prepared Foods continues its branded momentum as Just Bare® and Pilgrim’s® sales collectively grew over 56% from last year.
  • Momentum continued as profitability grew for the fifth straight quarter given benefits from recent network optimization, continued cost recovery efforts, and growth with Key Customers through innovation and strong service levels.
  • Mexico results improved relative to both first quarter and prior year as supply and demand fundamentals became progressively balanced, overall live performance improved, and interest in our branded offerings increased.

Headwinds

  • Q2 was still challenging for the commodity segment.
  • Overall protein availability challenges.
  • Lingering inflation.
  • Potential concerns in live operations in Mexico.
  • Uncertainties related to market volatility.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.0%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.8%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+23.2%

Q3 2012

Best reaction

-14.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.8%+0.5%-9.1%
Q4 2025-3.6%+0.7%-16.1%
Q3 2025-0.1%-2.3%-0.2%
Q1 2025-14.3%-14.5%-9.9%
Q4 2024+3.4%+3.6%-1.4%
Q3 2024+0.7%+6.6%+7.3%
Q2 2024+1.8%+4.5%+12.3%
Q1 2024-0.2%+1.7%-0.2%
Q4 2023+11.6%+11.2%+19.8%
Q3 2023+4.1%+8.2%+11.4%
Q2 2023+1.8%+2.5%+3.2%
Q1 2023+1.1%+2.2%+3.8%
Q4 2022+6.8%+4.0%+0.7%
Q3 2022+3.6%+2.7%+16.2%
Q2 2022-1.3%-6.7%-11.3%
Q1 2022+10.6%+10.5%+26.9%
Q4 2021-3.0%-2.6%-20.3%
Q3 2021-2.6%-1.5%-2.4%
Q2 2021+1.3%-0.3%+26.7%
Q1 2021-1.1%-1.7%-1.8%
Q4 2020-5.5%-5.0%+10.7%
Q3 2020+0.4%+6.8%+19.9%
Q2 2020-4.9%-5.9%+1.7%
Q1 2020+3.2%-5.4%-3.0%
Q4 2019-4.8%-10.6%-30.7%
Q3 2019+3.2%+4.2%+7.1%
Q2 2019+7.3%+5.2%+14.1%
Q1 2019+1.8%+6.8%-5.0%
Q4 2018-6.1%-3.2%+0.9%
Q3 2018+5.6%+7.2%+10.5%
Q2 2018-1.6%+1.2%+3.8%
Q1 2018+2.4%-2.2%-4.5%
Q4 2017+5.4%+3.1%-0.6%
Q3 2017+8.6%+13.1%+22.1%
Q2 2017+4.5%+7.6%+22.1%
Q1 2017-1.9%-2.1%-8.9%
Q4 2016+10.3%+9.9%+15.2%
Q3 2016+0.7%+4.4%-13.1%
Q2 2016-5.7%-7.7%-9.3%
Q1 2016+11.9%
Q4 2015-5.0%
Q3 2015-3.9%
Q2 2015+7.6%
Q1 2015+1.8%
Q4 2014+3.4%
Q3 2014+0.2%
Q2 2014-8.6%
Q1 2014+2.6%
Q4 2013-0.2%
Q3 2013-1.5%
Q2 2013+9.0%
Q1 2013+6.0%
Q4 2012-7.2%
Q3 2012+23.2%
Q4 2011-2.8%
Q2 2012-2.8%
Q1 2011+2.0%
Q1 2012+2.0%
Q4 2009+3.1%
Q1 2010+3.1%
Q3 2011-3.8%
Q3 2010-3.8%
Q4 2010-6.9%
Q2 2010-6.9%
Q2 2011-6.9%

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