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Analysts see blue skies ahead for Pilgrim’s Pride’s 2013 earnings
Story Date: 10/30/2012
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Source: Chris Scott, MEATINGPLACE, 10/29/12
Three industry analysts separately raised their estimates for Pilgrim’s Pride Corp.’s earnings in 2013, with all of them citing improved results in Mexico and more moderate feed grain prices.
Stephens Inc. analyst Farha Aslam lifted her projected earnings for Pilgrim’s Pride to 5 cents per share in fiscal 2013 instead of a loss of 2 cents previously noted and raised the fiscal 2012 estimate to 42 cents from 28 cents a share. Aslam says better fundamentals in Mexico led to stronger results in terms of pounds of chickens sold even as it offsets higher grain costs by maintaining egg sets in November and December.
Similarly, Kenneth Zaslow at BMO Capital Markets cited stronger profits in Mexico and improved operating efficiencies for raising the 2013 earnings estimate to 42 cents from 18 cents a share. Zaslow also expects Pilgrim’s to post net income of 73 cents a share in fiscal 2012, up from the previous estimate of 33 cents. He believes that Pilgrim’s is better positioned to weather the weak margin environment through improved efficiencies and non-U.S. chicken operations.
Finally, BB&T Capital Markets analyst Heather Jones says operational improvements and better-than-expected industry pricing contributed to her raising the 2013 estimate to 40 cents from 33 cents a share. She’s slightly less optimistic than her counterparts on the 2012 outlook, setting the fiscal 2012 estimate at 40 cents as a result of the company’s improved cost structure and debt management.
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