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Here's How Pilgrim's Pride (PPC) Looks Ahead of Q3 Earnings

Pilgrim’s Pride Corporation PPC is likely to register a decline in the bottom line when it reports third-quarter 2020 results on Oct 29. Though the Zacks Consensus Estimate for third-quarter 2020 earnings has moved up 43.5% in the past 30 days to 33 cents per share, it suggests a 26.7% drop from the year-ago quarter’s reported figure. Further, the company has a trailing four-quarter negative earnings surprise of 31.5%, on average.

Pilgrims Pride Corporation Price and EPS Surprise

Pilgrims Pride Corporation Price and EPS Surprise

Pilgrims Pride Corporation price-eps-surprise | Pilgrims Pride Corporation Quote

Factors to Note

Pilgrim’s Pride is witnessing sluggish demand in foodservice channels amid the coronavirus pandemic. Moreover, the company has been witnessing weak macroeconomic conditions in Mexico, which is causing disruptions in consumer spending and lowering demand in the region. In fact, these factors put pressure on revenues in Mexico in the second quarter.

Nevertheless, Pilgrim’s Pride is benefiting from favorable feed input costs. In fact, management in its last earnings call stated that they are optimistic regarding the costs of corn and soybean in the United States. Also, the company is steadily augmenting marketing support of its brands and optimizing its supply chain. Moreover, Pilgrim’s Pride’s customer-centric approach bodes well.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Pilgrim’s Pride this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Pilgrim’s Pride has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Church & Dwight CHD has an Earnings ESP of +1.80% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Hershey Company HSY currently has an Earnings ESP of +1.63% and a Zacks Rank #3.

Medifast MED currently has an Earnings ESP of +1.54% and a Zacks Rank of 3.

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Hershey Company The (HSY): Free Stock Analysis Report
 
Church Dwight Co., Inc. (CHD): Free Stock Analysis Report
 
Pilgrims Pride Corporation (PPC): Free Stock Analysis Report
 
MEDIFAST INC (MED): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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