Q4 Earnings Roundup: Pilgrim's Pride (NASDAQ:PPC) And The Rest Of The Perishable Food Segment

Let's dig into the relative performance of Pilgrim's Pride (NASDAQ:PPC) and its peers as we unravel the now-completed Q4 perishable food earnings season.

The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.

The 11 perishable food stocks we track reported a mixed Q4; on average, revenues missed analyst consensus estimates by 0.8%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but perishable food stocks have shown resilience, with share prices up 5.2% on average since the previous earnings results.

Pilgrim's Pride (NASDAQ:PPC)

Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers.

Pilgrim's Pride reported revenues of $4.53 billion, up 9.7% year on year, topping analyst expectations by 1.2%. It was a very strong quarter for the company, with gross margin, EBITDA, and EPS exceeding expectations. For the full year 2023, the company's Prepared Foods segment was the star of the show as its Just Bare and Pilgrim's brands grew 59% year on year.

“While our business faced a unique set of challenging conditions in 2023, we persevered as our team members maintained a leadership mindset and elevated their focus and execution of our strategy. As a result, we demonstrated an ability to drive profitable growth even under the most difficult circumstances as our sales and adjusted EBITDA strengthened throughout the year and showed increased momentum as we entered 2024,” said Fabio Sandri, Pilgrim’s CEO.

The stock is up 21.6% since the results and currently trades at $35.14.

Is now the time to buy Pilgrim's Pride? Access our full analysis of the earnings results here, it's free.

Best Q4: Mission Produce (NASDAQ:AVO)

Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.

Mission Produce reported revenues of $258.7 million, up 21.2% year on year, outperforming analyst expectations by 22.8%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.

Mission Produce delivered the biggest analyst estimates beat among its peers. The stock is up 5.9% since the results and currently trades at $11.33.

Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Fresh Del Monte Produce (NYSE:FDP)

Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.

Fresh Del Monte Produce reported revenues of $1.01 billion, down 3% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue narrowly topping analysts' expectations. That stood out as a positive in these results. On the other hand, its operating margin missed analysts' expectations as it recognized a $133.8 million non-cash asset impairment charge (assets in the North American fresh and value-added product segment and goodwill in prepared foods).

The stock is up 4.2% since the results and currently trades at $24.93.

Read our full analysis of Fresh Del Monte Produce's results here.

Dole (NYSE:DOLE)

Cherished for its delicious, world-famous pineapples and Hawaiian roots, Dole (NYSE:DOLE) is a global agricultural company specializing in fresh fruits and vegetables.

Dole reported revenues of $2.07 billion, up 1.5% year on year, falling short of analyst expectations by 4.7%. It was a mixed quarter for the company, with EPS exceeding expectations. On the other hand, its revenue unfortunately missed.

The stock is up 5% since the results and currently trades at $11.67.

Read our full, actionable report on Dole here, it's free.

Freshpet (NASDAQ:FRPT)

Contrasting itself with the typical processed pet foods found throughout the industry, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.

Freshpet reported revenues of $215.4 million, up 29.9% year on year, surpassing analyst expectations by 5.3%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Freshpet delivered the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 17.5% since the results and currently trades at $108.

Read our full, actionable report on Freshpet here, it's free.

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