Food products company,
Pilgrim's Pride Corporation
) reported strong results for the third quarter of 2013. Earnings
per share was recorded at 62 cents, an impressive rise of 264.7%
from the year-ago quarter. This was driven by an increase in both
revenues and margins.
The results also surpassed the Zacks Consensus Estimate of 61
cents by a penny.
In the reported quarter, net sales inched up 3.6% year over year
to $2.14 billion, as a result of higher exports and a strong
customer base. However, revenues missed the Zacks Consensus
Estimate of $2.20 billion by 2.6%.
Segment-wise, sales in the U.S. surged 4.4% to $1.9 billion
compared with the prior-year quarter. Sales in Mexico fell 3.4%
year over year to $210.2 million in the quarter.
Gross profit for the reported quarter increased 122.9% year over
year to $236.6 million. Adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) in the third quarter
escalated 114.1% to $226.1 million compared with $105.6 million
in the year-ago quarter. The improvements in profits are a result
of the company's endeavors to curb expenses.
Exiting the third quarter, Pilgrim's Pride's cash and cash
equivalents were approximately $330.3 million compared with $78.2
million at the end of the previous quarter. Long-term debt (net
of current portion) was recorded at $912.0 million in the
reported quarter, almost flat compared with quarter ended Jun 30,
In the nine months ended Sep 29, 2013,the company recorded cash
flow from operations of $596.7 million against $156.0 million in
the year-ago period. Capital expenditures in the nine months
increased to $76.3 million from $62.1 million in the year-ago
Management expects to reach higher operational efficiencies in
the coming quarters and into 2014. Also, the company will
undertake to reach its expected growth in value-added export
sales, by 30%, in the near term, which has been attained
The stock currently carries a Zacks Rank #3 (Hold). Other
stocks worth considering in the food products industry are
Diamond Foods, Inc.
Inventure Foods, Inc.
Pinnacle Foods Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
DIAMOND FOODS (DMND): Free Stock Analysis
PINNACLE FOODS (PF): Free Stock Analysis
PILGRIMS PRIDE (PPC): Free Stock Analysis
INVENTURE FOODS (SNAK): Free Stock Analysis
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