A month has gone by since the last earnings report for Pilgrim's Pride (PPC). Shares have lost about 1.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Pilgrim's Pride due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Pilgrim's Pride Corporation before we dive into how investors and analysts have reacted as of late.
Pilgrim’s Pride Q3 Earnings Beat Estimates, Sales Up 3.8%
Pilgrim’s Pride Corporation delivered third-quarter 2025 results, with top-line rising year over year, while bottom-line declined from the prior-year quarter. Also, the company’s earnings surpassed the Zacks Consensus Estimate.
Pilgrim’s Pride’s Q3 Results in Detail
Pilgrim’s Pride reported adjusted earnings of $1.52 per share, down from $1.63 in the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.41.
Net sales for the quarter rose 3.8% year over year to $4,759.3 million, supported by favorable commodity market pricing and growth in the U.S., Europe and Mexico business.
Gross profit decreased to $659.4 million from $684 million last year. Operating income stood at $492.6 million, while adjusted EBITDA reached $633.1 million, representing a 13.3% margin compared with 14.4% in the year-ago quarter.
Pilgrim’s Pride’s Segment Analysis
U.S. Operations: Net revenue increased 2.3% year over year to $2,836.6 million, driven by robust demand in Case Ready and Prepared Foods categories. U.S. adjusted EBITDA margin was 16.9%, compared with 18% a year ago.
Europe Operations: Net sales rose 6.5% year over year to $1,392.5 million. Adjusted EBITDA was $110.4 million, reflecting a 7.9% margin versus 8.6% last year.
Mexico Operations: Revenue advanced 5.3% to $530.2 million, supported by rising fresh and prepared foods demand from key customers. Adjusted EBITDA margin was 8.2%, down from 9.7% last year, due to production challenges and lower live market prices.
Pilgrim’s Pride’s Financial Health Snapshot
The company ended the quarter with cash and cash equivalents of $612.6 million, long-term debt (less current maturities) of $3,091.7 million and total shareholders’ equity of $3,555.7 million. The company provided $1,080.4 million in cash from operating activities for the nine months ended Sept. 28, 2025.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Pilgrim's Pride has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Pilgrim's Pride has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Pilgrim's Pride Corporation (PPC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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