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Pilgrim’s Pride Q1 profit drops as revenue climbs

Wall Street Journal US Business •
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Pilgrim’s Pride posted a first‑quarter profit of $101.4 million, or 43 cents a share, down sharply from $296 million and $1.24 a share a year earlier. The chicken and pork producer said demand for its chicken remained resilient, cushioning the revenue decline seen in prior periods. Investors will compare the drop to broader meat‑packing trends. The decline underscores the sector’s exposure to rising feed prices.

Excluding one‑time items, adjusted earnings came in at 51 cents per share, missing the 65‑cent consensus forecast from FactSet analysts. Net sales rose to $4.53 billion, edging up from $4.46 billion a year ago and beating the $4.43 billion estimate. Higher chicken margins partially offset the cost pressure from corn and soybean feed. The modest top‑line gain reflects stronger chicken pricing despite higher feed costs.

The earnings miss may pressure Pilgrim’s Pride’s share price, as analysts weigh lower profitability against solid revenue growth. With chicken demand holding up, the company could leverage pricing power, but the swing in earnings highlights sensitivity to commodity input volatility. Any slowdown in consumer spending could further erode margins, keeping the stock volatile. Investors will watch the firm’s cost‑management strategy in the next reporting period.