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What's in the Offing for Pilgrim's Pride (PPC) in Q1 Earnings?

Pilgrim's Pride Corporation PPC is likely to witness a year-over-year increase in its bottom line when it reports first-quarter 2022 earnings on Apr 27. The Zacks Consensus Estimate for earnings has jumped from 56 cents per share to 65 cents over the past 30 days. This indicates a rise of 54.8% from the figure reported in the prior-year period. Pilgrim's Pride has a trailing four-quarter earnings surprise of 24.9%, on average. This fresh, frozen and value-added chicken and pork products company delivered an earnings surprise of 40% in the last reported quarter.

Pilgrim's Pride Corporation Price, Consensus and EPS Surprise

Pilgrim's Pride Corporation price-consensus-eps-surprise-chart | Pilgrim's Pride Corporation Quote

Key Factors to Consider

The company has been benefiting from the strength of its Mexico and U.S. operations, with the latter gaining on the rising foodservice restaurant demand.

Pilgrim’s Pride’s customer centric approach propelled it to come up with unique offerings that provide competitive advantages. PPC’s focus on key customers is a pathway for refining its portfolio along with creating competitive advantages over its peers, especially amid pandemic-led disruptions. Management announced many projects in 2020 to support the growth of its key customers. In this regard, the company has been focused on doubling the case-ready capacity in its Cold Spring, MN plant. Also, Pilgrim’s Pride is increasing the mix of more stable-margin case-ready items. Further, on its fourth-quarter 2020 earnings call, management said that it is converting a commoditized large bird deboning plant to support solid demand from a key customer — QSR — in the small bird segment. Moreover, the company continues to gain from distribution and is on track to build the Just BARE brand via e-commerce, retail and club stores.

Apart from this, Pilgrim’s Pride has been steadily augmenting the marketing support of its brands as they expand and enter the new regions. Additionally, it resorts to frequent supply-chain improvements to enhance efficiency and reduce costs. Moreover, the positive impacts of acquisitions have been creating synergies. Keeping on track with its growth strategy, PPC concluded the buyout of Kerry Consumer Foods’ Meats and Meals business in September 2021. The acquired business solidifies Pilgrim’s Pride’s footing by operating as a business division under the company’s European operations.

However, the company has been grappling with the increased cost of sales for a while. Apart from this, the company is battling input cost inflation, pandemic-induced volatility, supply-chain disruptions and labor shortages. The company incurred pandemic-induced costs of nearly $6 million in the fourth quarter and $37 million in 2021. The persistence of these factors may have posed concerns in the quarter under review.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Pilgrim's Pride this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Pilgrim's Pride currently sports a Zacks Rank #1 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Hershey HSY has an Earnings ESP of +1.84% and a Zacks Rank #2. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Hershey’s revenues is pegged at $2,482 million, indicating growth of 8.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hershey’s quarterly earnings is pegged at $2.10 per share, suggesting a rise of 9.4% from the year-ago quarter’s reported figure. HSY delivered an earnings beat of 4.3%, on average, in the trailing four quarters.

Inter Parfums IPAR has an Earnings ESP of +5.60% and a Zacks Rank #2. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Inter Parfums’ revenues is pegged at $219.4 million, indicating a rise of 10.5% from the year-ago quarter.

The Zacks Consensus Estimate for Inter Parfums’ bottom line stands at 83 cents per share, which suggests a decline of 4.6% from the year-ago period’s reported figure. IPAR has a trailing four-quarter earnings surprise of 46.7%, on average.

Church & Dwight Co., Inc. CHD has an Earnings ESP of +2.69% and a Zacks Rank #3. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Church & Dwight’s revenues is pegged at $1,287 billion, indicating an increase of 3.6% from the year-ago quarter.

The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings per share of 76 cents suggests a decline of 8.4% from the year-ago quarter’s reported figure. CHD has a trailing four-quarter earnings surprise of 8.8%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Hershey Company The (HSY) : Free Stock Analysis Report

Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report

Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report

Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report

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