Pilgrim's Pride Q2 Profit Edges Down, But Beats View

(RTTNews) - Chicken products maker Pilgrim's Pride Corp. (PPC) on Wednesday reported a slight decline in profit for the second quarter from last year, while sales edged up higher. However, earnings per share for the quarter beat analysts' expectations.

Net income attributable to Pilgrim's Pride, a unit of Brazilian meat processor JBS SA, for the second quarter was $190.36 million or $0.73 per share, down from $190.71 million or $0.74 per share in the year-ago quarter.

On average, four analysts polled by Thomson Reuters expected the company to earn $0.67 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter edged up to $2.19 billion from $2.18 billion in the same period last year. Analysts had a consensus revenue estimate of $2.20 billion for the quarter.

The latest quarter's results include a foreign currency translation loss of $1.82 million, compared to foreign currency translation gain of $9.71 million in the year-ago period.

Bill Lovette, Chief Executive Officer of Pilgrim's Pride said, "The margin strength we've demonstrated has been generated by capturing improvements in cost and sales mix, all rooted in operational excellence. This year we have found significant savings through our zero based budgeting process, and even now are identifying even more areas where we can drive efficiencies."

In early June, Pilgrim's Pride withdrew its $55-per-share offer to acquire Hillshire Brands Co. (HSH), thus brightening meat producer Tyson Foods Inc.'s (TSN) chances of acquiring the maker of Jimmy Dean sausages and Ball Park hot dogs.

Tyson Foods said in early July that it agree to acquire smaller peer Hillshire Brands for $63 per share in an all-cash deal valued at about $8.55 billion, including outstanding debt.

PPC closed Wednesday's trading at $29.94, down $0.66 or 2.16 percent on a volume of 2.56 million shares. In after-hours, the stock further declined $0.11 or 0.37 percent to $29.83.