NASDAQ$PPC

Pilgrim's Pride · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Pilgrim's Pride's Q3 2020 performance was marked by net sales of $3.08 billion and GAAP EPS of $0.14.

Pilgrim's Pride Corporation reported Q3 2020 financial results, including net sales of $3.08 billion. The company faced challenging market conditions due to Covid-19, but its diversified strategy helped mitigate the tough environment. The U.S. and Mexico rebounded from a difficult first half, with Mexico recording one of its strongest Q3s in history. Europe also continued to improve despite increased operating costs related to Covid-19.

  • Net Sales reached $3.08 billion.
  • Net GAAP Income was $33.4 million.
  • Adjusted EPS was $0.66, excluding a $110.5 million DOJ agreement.
  • Consolidated Operating Income margin was 3%, with adjusted margins of 6.7% in the U.S. (excluding the DOJ agreement), 18.4% in Mexico, and 3.5% in Europe.

Headline financials

Total Revenue

$3.08B

Previous: $2.78B+10.7%
EPS (adj)

$0.66

Previous: $0.45+46.7%
Adjusted EBITDA

$305M

Previous: $258M+18.1%
Adjusted EBITDA Margin

9.9%

Previous: 9.3%+6.5%
Capital Expenditures

-$243M

Previous: -$259M+6.2%
Free Cash Flow

-$209M

Previous: -$149M-40.4%
Net Income

$33.4M

Previous: $110M-69.5%
Operating Income

$94.3M

Previous: $188M-49.9%
Gross Profit

$314M

Previous: $282M+11.2%
Cash & Equivalents

$768M

Previous: $598M+28.4%
Total Assets

$7.47B

Previous: $6.6B+13.1%
Stock-Based Comp

-$4.76M

Previous: $2.11M-326.0%

Revenue & EPS history

Pilgrim's Pride · Revenue · Quarterly

$3.08B

Q3 2020+10.7%vs Q3 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The markets have remained volatile and challenging in Q3 as a result of Covid-19. However, the company's diversified strategy has continued to mitigate the tough environment and produce the expected results in relative performance to industry competition, and deliver more resilient performance regardless of changes in specific market conditions.

Tailwinds

  • Demand in the U.S. is recovering, with Retail and QSR businesses stronger than a year ago.
  • Relative performance versus the industry is continuing to improve, supported by agility in adapting mix and Key Customer approach.
  • Mexico experienced a significant rebound to record one of the strongest Q3s in its history.
  • The legacy European chicken business continued to improve its results despite Covid-19 impact, with better operational efficiencies and a commitment to innovation.
  • The momentum of newly acquired European pork assets in generating positive EBITDA is continuing, while margins are also increasing on a consistent basis.

Headwinds

  • Commodity large bird deboning was once again the most challenged this quarter.
  • Markets have remained volatile and challenging in Q3 as a result of Covid-19.
  • Unfavorable mix impact in Mexico.
  • Added operating costs in Mexico.
  • Significant impact of Covid-19 on European operations.

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 Q3 2020

Historical avgQ3 2020

+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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