Dive Brief:
- Pilgrim's Corp., formerly known as Pilgrim's Pride, reported profit of $143.4 million in the fourth-quarter, a startling increase of 529% from a year earlier.
- The poultry processor attributed the results to its continuing efforts to reduce costs. Input costs fell 13% for the year, according to the Greeley, Colo.-based company.
- Sales at Pilgrim's Corp. declined 6.5% for the year to $2.05 billion.
Dive Insight:
Wall Street has fallen in love with Pilgrim's Corp. and its cost-cutting approach, and yesterday's news only increased the affection levels. Shares rose another 2% after the earnings release — making for a total increase of 92% in the past year.
It's hard to argue with success like that. How many companies in your portfolio have seen their share prices double in 12 months? Still, as we have said before, there's something about cutting at Pilgrim's Corp. that leaves a nasty smell behind.