Pilgrims Pride Corp (PPC)

Despite a late quarter swoon in the U.S. white meat markets and weaker-than-expected pricing in Mexico (softer demand trends likely related to lower remittances/FX and some impact from strong imports from Brazil), we have raised…

Total domestic meat supply conditions have begun to ease in recent weeks despite tighter beef conditions. That largely reflects expanded chicken production, but is compounded by continued yr/yr deterioration in total net exports (exports less…

New World Screwworm (NWS) has garnered significant media attention over the past weeks, particularly following the second closure of US-Mexico livestock crossings in early July. The lack of live cattle entering the US has exacerbated…

Pilgrim’s reported better-than-expected Q2 results and the upside was driven – relative to our projection – primarily by Mexico. We have raised our full-year estimate by just a penny to $5.26 despite the upside, as…

For multiple oft-discussed reasons, U.S. protein availability has been constrained which, combined with robust demand, has driven extremely strong pricing (and margins for chicken companies and hog producers). In recent months, supply conditions have loosened…

We have reduced our Q3 ($1.59/$1.69) and full-year 2025 ($5.25/$5.47) estimates, as well as our 2026 ($3.22/$3.50) projection. We trimmed our estimate for Mexico, but that was largely offset by a more bullish estimate for…

Brazil’s farmers have long benefited from both the ability to produce 2-3 crops per year and relatively low land conversion costs. Technological improvements have fostered higher yields that have improved its cost profile further (BZ…

Overall domestic consumer demand has been broadly weak, but meat has fared better due to diet changes. Recently, there are even indications meat demand is slowing in response to torrid price gains, as well as…

Pilgrim’s posted 1Q results below our/street estimates, missing HJR EPS and EBITDA by 4%/5%, respectively. All three regions drove the underperformance relative to our estimate, but the miss in Mexico was the largest on a…

We have reduced our Q1 estimate ($1.36/$1.46) for PPC to reflect weaker conditions in the Mexico market late in the quarter, as well as our belief that costs in the U.S. business likely continued to…