Breaking News

China Cuts Benchmark Interest Rates to Boost Economy
Tweet TWEET

Brasil Foods Gains as Earnings Beat Estimates: Sao Paulo Mover

BRF - Brasil Foods SA (BRFS3), the world’s largest poultry exporter by volume, rose to the highest in a month after reporting earnings that beat analysts’ estimates because of cost cuts, higher prices and rising exports.

Brasil Foods climbed 2.3 percent to 44.32 reais at 11:51 a.m. in Sao Paulo after reaching 44.65 reais, the highest intraday since Jan. 30. The shares of the food maker are up 5 percent this year, compared with a 6.4 percent decline in the benchmark Bovespa index.

Net income excluding some items was 562.8 million reais ($286 million) in the fourth quarter, beating the 428.1 million- real average of seven analysts’ estimates compiled by Bloomberg, Sao Paulo-based Brasil Foods said yesterday after markets closed. Rising demand and prices for poultry this year will likely help the foodmaker continue to improve profit margins, BTG Pactual analysts led by Thiago Duarte said.

“We expect poultry exports back at full throttle by mid-2013 on rising global poultry prices,” the Sao Paulo-based analysts, who rate the stock a buy, said in a note to clients today. “Strong momentum leaves us confident in our buy rating.”

To contact the reporter on this story: Carlos Caminada in Sao Paulo at ccaminada1@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.