Pilgrim's Pride Guides Higher - TheStreet

Pilgrim's Pride Guides Higher

The company says quarterly earnings will beat internal targets and analysts' estimates.
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Pilgrim's Pride

(CHX)

said Monday that it expects third-quarter earnings to be higher than expected and beat analysts' estimates.

Shares of the company were rising 6.6% recently to $11.36.

The poultry producer now expects to earn 40 cents to 42 cents a share, including restructuring gains totaling 24 cents to 26 cents a share. The company's previous guidance was for earnings of 27 cents to 37 cents a share.

Analysts were expecting the company to earn 5 cents a share before gains. Pilgrim's Pride earned 8 cents a share in the third quarter last year.

"Our stronger-than-expected performance in the third quarter reflects improved fresh chicken markets and significant profit improvement in our Mexico operations ... as well as additional nonrecurring gains from our vitamin lawsuit settlements," said O.B. Goolsby, president and chief operating officer. The Pittsburg, Texas-based company will announce results on July 23.

The company also said that the waiting period has expired in connection with its agreement to acquire

ConAgra's

(CAG) - Get Report

chicken division. Pilgrim's Pride expects to close the acquisition in the third quarter.