Q2 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 Q2 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.7%.

The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

Luckily, perishable food stocks have performed well with share prices up 10% on average since the latest 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 $4.56 billion, up 5.8% year on year. This print fell short of analysts’ expectations by 1.4%, but it was still an exceptional quarter for the company with an impressive beat of analysts’ gross margin and EBITDA estimates.

“Our global portfolio delivered significant year-over-year profitability growth. We remained disciplined in the execution of our strategies, focusing on what we can control and continuing to expand our relationships with Key Customers, elevating our performance as market fundamentals became increasingly attractive,” said Fabio Sandri, President and Chief Executive Officer.

Interestingly, the stock is up 13% since reporting and currently trades at $46.60.

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

Best Q2: Mission Produce (NASDAQ:AVO)

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

Mission Produce reported revenues of $324 million, up 23.9% year on year, outperforming analysts’ expectations by 40.3%. The business had an incredible quarter with an impressive beat of analysts’ earnings estimates.

Mission Produce scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 12% since reporting. It currently trades at $11.98.

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

Weakest Q2: Cal-Maine (NASDAQ:CALM)

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.

Cal-Maine reported revenues of $785.9 million, up 71.1% year on year, exceeding analysts’ expectations by 11.5%. Still, it was a slower quarter as it posted a miss of analysts’ earnings estimates.

Interestingly, the stock is up 17.3% since the results and currently trades at $90.17.

Read our full analysis of Cal-Maine’s results here.

Tyson Foods (NYSE:TSN)

Started as a simple trucking business, Tyson Foods (NYSE:TSN) today is one of the world’s largest producers of chicken, beef, and pork.

Tyson Foods reported revenues of $13.35 billion, up 1.6% year on year. This number surpassed analysts’ expectations by 1.1%. It was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates.

The stock is down 3.6% since reporting and currently trades at $59.04.

Read our full, actionable report on Tyson Foods here, it’s free.

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 $2.12 billion, flat year on year. This result topped analysts’ expectations by 1.3%. Taking a step back, it was a satisfactory quarter as it also recorded a decent beat of analysts’ operating margin estimates but a miss of analysts’ EBITDA estimates.

The stock is up 8.8% since reporting and currently trades at $15.83.

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

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