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.
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