It's been a good week for Pilgrim's Pride Corporation (NASDAQ:PPC) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.6% to US$50.17. Results look mixed - while revenue fell marginally short of analyst estimates at US$4.6b, statutory earnings beat expectations 4.2%, with Pilgrim's Pride reporting profits of US$1.47 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Pilgrim's Pride

Taking into account the latest results, the current consensus from Pilgrim's Pride's four analysts is for revenues of US$18.6b in 2025. This would reflect a satisfactory 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are expected to shrink 2.1% to US$4.07 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$18.5b and earnings per share (EPS) of US$3.74 in 2025. So the consensus seems to have become somewhat more optimistic on Pilgrim's Pride's earnings potential following these results.

There's been no major changes to the consensus price target of US$44.33, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Pilgrim's Pride at US$51.00 per share, while the most bearish prices it at US$35.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Pilgrim's Pride's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.4% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.8% annually. So it's pretty clear that, while Pilgrim's Pride's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Pilgrim's Pride going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Pilgrim's Pride has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.