Meat products company,
Pilgrim's Pride Corporation
) reported impressive fourth-quarter 2013 results. Earnings per
share in the quarter were 55 cents, reflecting a marked
improvement over 9 cents earned in the year-ago quarter. The
bottom-line result also surpassed the Zacks Consensus Estimate of
50 cents by 10%.
For 2013, Pilgrim's Pride recorded earnings per share of $2.12,
up from 70 cents in 2012 and above the Zacks Consensus Estimate
Revenues generated in the fourth quarter were $2,047.3
million, down 6.9% year over year and also below the Zacks
Consensus Estimate of $2,066 million.
DIAMOND FOODS (DMND): Free Stock Analysis
HILLSHIRE BRAND (HSH): Free Stock Analysis
PILGRIMS PRIDE (PPC): Free Stock Analysis
TYSON FOODS A (TSN): Free Stock Analysis
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Poor performance was recorded both in the United States and in
Mexico. Revenues derived from operations in the United States
fell 5.2% year over year to $1,837.2 million and revenues from
Mexico were down by 16.8% to $210.1 million.
In 2013, Pilgrim's Pride generated revenues of $8,411.1 million,
up 3.6% year over year but below the Zacks Consensus Estimate of
Cost of revenue in fourth-quarter 2013 went down 13.0% year over
year and represented 89.8% of total revenue, down from 96.6% in
the year-ago quarter. Gross margin in the quarter expanded 680
basis points to 10.2%. Selling, general and administrative
expenses, as a percentage of total revenue, were at 2.4%, up 30
basis points year over year.
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) in the fourth quarter were $197.2 million,
up from $67.4 million in the year-ago quarter.
Balance Sheet/Cash Flow
Exiting fourth-quarter 2013, Pilgrim's Pride's cash and cash
equivalents were $508.2 million versus $330.3 million recorded in
the preceding quarter. Long-term debt, net of current maturities,
was $502.0 million, way below $912.0 million at the end of the
In 2013, Pilgrim's Pride generated $878.5 million in cash flow
from operating activities versus $199.6 million in 2012. Capital
spent on acquisitions of properties, plants and equipments
increased 28.7% to $116.2 million.
Pilgrim's Pride currently carries a Zacks Rank #3 (Hold). Some
better-ranked companies in the industry include
Tyson Foods, Inc.
The Hillshire Brands Co.
Diamond Foods, Inc.
). While Tyson Foods carries a Zacks Rank #1 (Strong Buy), both
The Hillshire Brands and Diamond Foods hold a Zacks Rank #2