Pilgrim’s Pride’s Stock Fell 6% on Missed Earnings



Stock price performance

After the market closed on February 10, Pilgrim’s Pride Corporation (PPC) reported its financial results for fiscal 4Q15, which ended December 27, 2015. Management discussed the results of the earnings call on February 11 before the market opened. The stock fell 6% to close at $21 on February 11 as compared to the previous day’s closing price of $22.40. The company’s earnings and sales missed analysts’ estimates. However, the stock rose 5% on February 12 to close at $22.03.

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The stock has risen by almost 19% since the 3Q15 earnings release on October 29. The stock has risen 1% so far in 2016 as of February 12 and has risen 4% in the last two months. However, it fell 30% in 2015. The stock’s price movements on YTD (year-to-date) and month-to-date bases are -0.27% and -0.67%, respectively. However, the stock has risen 0.98% on a trailing-five-day basis.

Peers’ stock performances

Pilgrim’s Pride’s peers in the industry include Hormel Foods (HRL), Sanderson Farms (SAFM), and Tyson Foods (TSN). Hormel Foods, Sanderson Farms, and Tyson Foods have risen 6.1%, 11.3%, and 13.6%, respectively, so far in 2016. They closed at $41.50, $83.40, and $60.17, respectively, on February 12.

The First Trust Consumer Staples AlphaDEX Fund (FXG) invests 4.8% of its holdings in HRL, 4.7% of its holdings in TSN, and 3.4% of its holdings in PPC. FXG closed at $42.83 on February 12 and has fallen 3.8% YTD. The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) invests 3.6% of its holdings in TSN.

What to look for in this series

Scroll down to check out Pilgrim’s Pride’s performance in its recently reported fiscal 4Q15. We’ll also discuss moving averages of Pilgrim’s Pride and its peers. Further, we’ll look at analysts’ recommendations for the stock after the 4Q15 earnings release and the company’s guidance for 2016.


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