JBS Rises Most in Two Months After Pilgrim’s Earnings Surprise

JBS SA (JBSS3), the world’s largest poultry producer, rose the most in two months after the Brazilian company’s U.S. unit reported profit that exceeded estimates.

JBS soared 5.2 percent to 6.70 reais at 11:13 a.m. in Sao Paulo, heading to the biggest one-day gain since May 16. Brazil’s benchmark Ibovespa advanced 1.2 percent.

JBS’s U.S. poultry unit, Pilgrim’s Pride Corp. (PPC), reported late yesterday that net income almost tripled in the second quarter to 74 cents a share, beating the 57-cent average estimate of four analysts surveyed by Bloomberg. Pilgrim’s Pride accounts for about 20 percent of JBS’s annual sales.

“As corn and soybean prices drop sequentially, we expect the division to sustain margin expansion for the remainder of the year,” Alexander Robarts, a New York-based analyst for Citigroup Inc., wrote in a report today.

To contact the reporter on this story: Lucia Kassai in Sao Paulo at lkassai@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.