Pilgrim’s Pride, the renowned chicken supplier, announced a decline in profit and sales during the second quarter. However, its adjusted earnings proved to be stronger than what analysts had anticipated.
Profit and Sales Figures
In comparison to the same quarter last year, Pilgrim’s Pride recorded a profit of $60.5 million, or 25 cents per share, a significant drop from $362.1 million, or $1.50 per share.
Adjusted Earnings Beat Expectations
Despite the decline in profit, the company’s adjusted earnings surpassed expectations, reaching 44 cents per share. Analysts polled by FactSet had predicted a figure of 33 cents per share.
Decrease in Sales
In terms of sales, Pilgrim’s Pride reported $4.31 billion for the second quarter, down from $4.63 billion in the year-ago quarter. The sales figure fell short of analyst projections, which had forecasted $4.38 billion.
Improving Margins in a Challenging Market
Interestingly, despite ongoing challenges in the commodity market for larger chickens, Pilgrim’s Pride managed to sequentially improve their margins. This is an impressive feat given the current circumstances.
Positive Outlook for Operations in Mexico
Pilgrim’s Pride’s operations in Mexico also showed signs of improvement. Supply and demand dynamics reached a balance, while interest in their branded offerings continued to increase.
Market Response
Following the release of the quarterly results, there was no significant movement in Pilgrim’s Pride’s stock prices during after-hours trading.
