BRF Drops Most in Seven Months in Sao Paulo on Earnings MissDenyse Godoy
BRF SA, Brazil’s largest food company, fell the most in seven months as profit missed analysts’ estimates for a second straight quarter.
The shares dropped 3.8 percent to 53.01 reais at the close of trading in Sao Paulo, the biggest decline since March 11. The Ibovespa equity benchmark gained 1.7 percent.
While BRF’s adjusted net income tripled to 287 million reais ($131 million) in the three months through September from a year earlier, it trailed the average estimate of 362 million reais among 10 analysts surveyed by Bloomberg.
“Third-quarter results exert downward pressure on our estimates for 2013, and short-term results might continue to suffer because of cautious consumers in the domestic market,” Giovana Araujo and Antonio Barreto, analysts at the investment bank Itau BBA, wrote in a research note to clients.