PPC stock performance
Pilgrim’s Pride (PPC), a Colorado-based meat producer, is all set to report its fiscal 1Q16 results before the opening bell on April 28. Pilgrim’s Pride’s stock has risen 12% since its last quarterly earnings release on February 10. The stock fell 6% after the company reported its fiscal 4Q15 results because the company missed earnings and revenue estimates. For fiscal 2015, earnings and revenue dropped by 9% and 5%, respectively.
The stock has gained ~14% so far in 2016, but it fell as much as 30% in 2015. The stock has outperformed the S&P 500 Index by 11% as of April 14.
Peers’ stock performance
Pilgrim’s Pride is a part of the meat industry. It has a market cap of $6.3 billion and is a subsidiary of JBS USA Holdings, which owns ~77% of the company. Its peers in the industry include Hormel Foods (HRL), Sanderson Farms (SAFM), and Tyson Foods (TSN). So far in 2016, Hormel Foods (HRL) has returned 0.4%, Sanderson Farms (SAFM) has returned 20%, and Tyson Foods (TSN) has returned 22%.
HRL, SAFM, and TSN closed April 14 at $39.25, $89.56, and $64.6, respectively. The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) invests 3.3% of its holdings in TSN. The AdvisorShares TrimTabs Float Shrink ETF (TTFS) invests 1.2% of its portfolio in PPC.
This series will look at what to expect from Pilgrim’s Pride’s fiscal 1Q16 earnings release. We’ll cover analysts’ estimates for revenue, EPS (earnings per share), and what might affect revenue and earnings. We’ll also do a quick recap of how the company ended its fiscal 2015 and the company’s recently announced strategic investment plan to drive margin growth. Finally, we’ll look at the company’s valuation and Wall Street’s recommendations over the next 12 months.