Chicken producer Pilgrim’s Pride (NASDAQ:PPC) fell short of the market’s revenue expectations in Q1 CY2025 as sales rose 2.3% year on year to $4.46 billion. Its non-GAAP profit of $1.31 per share was 2.2% below analysts’ consensus estimates.
Is now the time to buy Pilgrim’s Pride? Find out in our full research report.
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Revenue: $4.46 billion vs analyst estimates of $4.54 billion (2.3% year-on-year growth, 1.6% miss)
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Adjusted EPS: $1.31 vs analyst expectations of $1.34 (2.2% miss)
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Adjusted EBITDA: $533.2 million vs analyst estimates of $552.8 million (11.9% margin, 3.5% miss)
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Operating Margin: 9.1%, up from 5.7% in the same quarter last year
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Free Cash Flow Margin: 0.6%, down from 3.7% in the same quarter last year
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Market Capitalization: $12.81 billion
“While facing volatility during the quarter, we maintained our focus on controlling the controllables and consistent execution of our strategies,” said Fabio Sandri, Pilgrim’s President and CEO.
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers.
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $17.98 billion in revenue over the past 12 months, Pilgrim’s Pride is larger than most consumer staples companies and benefits from economies of scale, enabling it to gain more leverage on its fixed costs than smaller competitors. Its size also gives it negotiating leverage with distributors, allowing its products to reach more shelves. However, its scale is a double-edged sword because there are only so many big store chains to sell into, making it harder to find incremental growth. To accelerate sales, Pilgrim’s Pride likely needs to optimize its pricing or lean into new products and international expansion.
As you can see below, Pilgrim’s Pride’s 4.5% annualized revenue growth over the last three years was tepid. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.
This quarter, Pilgrim’s Pride’s revenue grew by 2.3% year on year to $4.46 billion, falling short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and indicates its products will face some demand challenges.
