BRF Rises to One-Month High as Earnings Beat Analysts’ Forecasts
Shares rose 1.4 percent to 48.75 reais at 11:37 a.m. in Sao Paulo after reaching 49.01 reais, the highest intraday since July 1. The benchmark Ibovespa fell 0.8 percent.
Net income soared 33-fold to 208.4 million reais ($92 million), or 24 centavos a share, from 6.39 million reais, or 1 centavo, a year earlier, the Sao Paulo-based company said today. Its earnings before interest, taxes, depreciation and amortization, or Ebitda, of 910 million reais excluding some items beat the 841 million-real average of seven analysts’ estimates compiled by Bloomberg.
Earnings rose after prices for domestic meat product were raised by an average 18 percent, while costs to feed its chicken and pork fell, BRF said. Average soybean prices in Chicago fell 1.2 percent in the quarter, while corn remained almost unchanged.
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