Pilgrims Pride Corp (PPC)

Pilgrim’s reported impressive Q3 results that bested us by 7%; much stronger-than-expected results from Europe and Mexico more than offset a slight (2%) miss in the U.S. Continued favorable S/D backdrops in the U.S. and…

Very elevated uncertainty is the overwhelming theme headed into Q3 earnings, whether that be related to biofuels policy (see our Ag Brief published yesterday), the Election or protein production. Below (cont’d pg 2) we offer…

In the U.S. chicken business, Q3 and early Q4 have played out in a very unusual way. Demand accelerated as the pivot within retail and foodservice away from beef grew more pronounced. Further, production has…

Given the ferocity of Hurricane Helene’s winds and its drenching rains, damage to the broiler industry that is concentrated in the Southeast is to be expected. The industry is no stranger to hurricane damage as…

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…