Zacks Investment Research has downgraded Pilgrim's Pride to a Zacks Rank #5 (Strong Sell), citing a sharp collapse in commodity chicken prices and deteriorating earnings estimates. The company's second-quarter adjusted earnings fell 62.4% to 64 cents per share, missing the consensus estimate of 75 cents, while net sales declined 2.8% to $4.63 billion. Gross profit was cut roughly in half to $339.8 million, and adjusted EBITDA margin compressed to 7.8% from 14.4% a year earlier. Management declined to provide specific numerical guidance for the third quarter or full year, and the full-year EPS consensus of $2.95 per share reflects a 43% decline relative to last year. Shares are down roughly 31% year to date, and the stock has formed a bearish death cross with both the 50-day and 200-day moving averages sloping lower.
Pilgrims Pride CorpEarnings miss and margin collapse drive downgrade to Strong Sell.
