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.”
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