The quarterly results for Pilgrim's Pride Corporation (NASDAQ:PPC) were released last week, making it a good time to revisit its performance. Revenues were US$4.4b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.51, an impressive 23% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Pilgrim's Pride

Taking into account the latest results, the most recent consensus for Pilgrim's Pride from five analysts is for revenues of US$17.8b in 2024. If met, it would imply a modest 4.8% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 1,815% to US$2.58. Before this earnings report, the analysts had been forecasting revenues of US$17.7b and earnings per share (EPS) of US$2.51 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$28.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Pilgrim's Pride, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$27.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Pilgrim's Pride's revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.4% annually. Even after the forecast slowdown in growth, it seems obvious that Pilgrim's Pride is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Pilgrim's Pride following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$28.25, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Pilgrim's Pride going out to 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Pilgrim's Pride (1 is potentially serious!) that we have uncovered.

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