Q3 Packaged Food Earnings: Pilgrim's Pride (NASDAQ:PPC) Impresses
As Q3 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the packaged food stocks, including Pilgrim's Pride (NASDAQ:PPC) and its peers.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods, prepared meals, or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences.The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 29 packaged food stocks we track reported a slower Q3; on average, revenues missed analyst consensus estimates by 2.2% while next quarter's revenue guidance was 10.9% below consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but packaged food stocks held their ground better than others, with the share prices up 8.9% on average since the previous earnings results.
Best Q3: Pilgrim's Pride (NASDAQ:PPC)
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Pilgrim's Pride reported revenues of $4.36 billion, down 2.4% year on year, topping analyst expectations by 1.5%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
“Throughout the quarter, we continued to strengthen our business through consistent application and execution of our strategies of Key Customer partnership, portfolio diversification, and operational excellence. Given our focus, profitability improved again relative to prior quarter across all regions despite uneven market conditions and persistent consumer inflation,” said Fabio Sandri, Pilgrim’s Chief Executive Officer.
The stock is up 16.4% since the results and currently trades at $27.37.
Is now the time to buy Pilgrim's Pride? Access our full analysis of the earnings results here, it's free.
Lamb Weston (NYSE:LW)
Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.73 billion, up 35.7% year on year, outperforming analyst expectations by 1.9%. It was a decent quarter for the company, with a beat of analysts' revenue estimates. Looking forward, while revenue guidance was maintained from the previous outlook, EPS guidance was raised.
Lamb Weston scored the fastest revenue growth among its peers. The stock is up 4.4% since the results and currently trades at $109.56.
Is now the time to buy Lamb Weston? Access our full analysis of the earnings results here, it's free.
Slowest Q3: Cal-Maine (NASDAQ:CALM)
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.
Cal-Maine reported revenues of $523.2 million, down 34.7% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.
Cal-Maine had the slowest revenue growth in the group. The stock is up 0% since the results and currently trades at $54.9.
Read our full analysis of Cal-Maine's results here.
Calavo Growers (NASDAQ:CVGW)
A trailblazer in the avocado industry, Calavo Growers (NASDAQGS:CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.
Calavo Growers reported revenues of $259.9 million, down 24% year on year, falling short of analyst expectations by 8.4%. It was a strong quarter for the company, with an impressive beat of analysts' gross margin estimates.
The stock is down 14% since the results and currently trades at $26.94.
Read our full, actionable report on Calavo Growers here, it's free.
Kraft Heinz (NASDAQ:KHC)
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Kraft Heinz reported revenues of $6.57 billion, flat year on year, falling short of analyst expectations by 2%. It was a weaker quarter for the company, with a miss of analysts' revenue estimates.
The stock is up 17.2% since the results and currently trades at $36.87.
Read our full, actionable report on Kraft Heinz here, it's free.
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The author has no position in any of the stocks mentioned
