Pilgrim’s Pride Corp. reported earnings that beat estimates, signaling the worst is over for the second-largest US chicken producer amid persistent “challenging” conditions.
(Bloomberg) — Pilgrim’s Pride Corp. reported earnings that beat estimates, signaling the worst is over for the second-largest US chicken producer amid persistent “challenging” conditions.
Second-quarter earnings, excluding some items, were 44 cents per share, 71% lower than a year earlier, the company said. Still, profits rebounded from extremely depressed levels in the previous two quarters, beating even the highest analyst estimate.
Chicken producers have seen profits slump over the past few quarters as a supply glut and persistently high feed costs were met with sluggish consumer appetite. But Pilgrim’s, which owns operations in North America, the UK and Europe, says financial performance in the three months ended June improved across all regions when compared with the first quarter even as the company continue to face “challenges in overall protein availability and lingering inflation.”
“Fundamentals still remain on shaky footing in 3Q, but are much improved from what we saw earlier in the year,” Stephens Inc. analyst Ben Bienvenu wrote in a note.
Pilgrim’s Pride is controlled by Brazilian meat giant JBS SA.
–With assistance from Michael Hirtzer.
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