Analyst Estimates: Here's What Brokers Think Of Pilgrim's Pride Corporation (NASDAQ:PPC) After Its Third-Quarter Report

It's been a good week for Pilgrim's Pride Corporation (NASDAQ:PPC) shareholders, because the company has just released its latest third-quarter results, and the shares gained 8.6% to US$50.17. Results look mixed - while revenue fell marginally short of analyst estimates at US$4.6b, statutory earnings beat expectations 4.2%, with Pilgrim's Pride reporting profits of US$1.47 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Pilgrim's Pride

Taking into account the latest results, the current consensus from Pilgrim's Pride's four analysts is for revenues of US$18.6b in 2025. This would reflect a modest 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to reduce 2.1% to US$4.07 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$18.5b and earnings per share (EPS) of US$3.74 in 2025. So the consensus seems to have become somewhat more optimistic on Pilgrim's Pride's earnings potential following these results.

The consensus price target was unchanged at US$44.33, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Pilgrim's Pride at US$51.00 per share, while the most bearish prices it at US$35.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Pilgrim's Pride shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Pilgrim's Pride's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.4% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this to the 137 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.8% per year. So it's pretty clear that, while Pilgrim's Pride's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Pilgrim's Pride's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$44.33, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Pilgrim's Pride analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Pilgrim's Pride (1 shouldn't be ignored) you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.