Pilgrims Pride Corp (PPC)

2024 has borne a striking resemblance to 2014/2015 – sharp contraction in cattle herd (bottomed in 2014, down 9% from 2007 peak), dropping feed costs, bird flu and supply challenges within the broiler industry. This…

As expected, Pilgrim’s reported robust Q2 results propelled by both strong pricing and lower costs that bested our Street-high estimate. Adjusted interest expense (we excluded gain on open-market bond repurchase) also came in below our…

Over the past few months, there has been a marked inflection in domestic broiler demand that combined with constrained supply has resulted in robust pricing and thereby, margins.  Producer margins have also been bolstered by…

With the exception of beef processors, the protein industry is enjoying strong, even robust, profitability. Supply has been the key factor, but demand seems to have positively inflected, as well. In our view, this should…

PPC’s Q1 was below our estimate largely due to weaker than expected U.S. pricing. In our view, that was largely timing and we believe earnings growth this year will be robust on the back of…

With the exception of beef packers (est losses in the $200-ish/head range), the protein complex has enjoyed robust margins. We estimate that the average BB broiler producer is generating profits approaching $0.30/lb, while small- and…

As we noted in our industry notes published earlier today, we are not utilizing the typical rating system, but instead, are using a forced rank process. This note shows current ranking based upon Friday’s close.

When we first began following Pilgrim’s Pride, it had been very poorly managed for some time and ill-timed feed hedges finally precipitated its tumble into bankruptcy. Since, much stronger management has greatly improved operations, from…