JBS Leads Ibovespa Higher as U.S. Poultry Unit OutperformsLucia Kassai
JBS SA, the world’s largest poultry producer, climbed the most on the Ibovespa after the Brazilian company’s U.S. unit reported profit that beat estimates.
Shares of JBS soared 9.7 percent to 6.99 reais at the close of trading in Sao Paulo, the biggest gain since March 2012. The Ibovespa advanced 1.9 percent.
JBS’s U.S. poultry unit, Pilgrim’s Pride Corp., reported yesterday that net income almost tripled in the second quarter from a year earlier to 74 cents a share, beating the 57-cent average estimate of four analysts surveyed by Bloomberg. Pilgrim’s Pride, which accounts for about 20 percent of Sao Paulo-based JBS’s annual sales, surged 7 percent in U.S. trading to a five-year high of $17.79.
“They had an overall improvement, a real surprise,” Eduardo Carlier, who helps manage 3.5 billion reais ($1.5 billion) in assets including JBS stock at Schroder Investment Management, said in a telephone interview from Sao Paulo. “Pilgrim’s gave them a real boost.”