(Updates with closing share price in second paragraph.)
Oct. 28 (Bloomberg) -- BRF-Brasil Foods SA, the world’s largest poultry exporter, jumped to a record after earnings beat analysts’ estimates and it doubled its forecast for a gain from merger-related cost cuts.
Brasil Foods rose 1.5 percent to 35.54 reais ($21.25) at the close in Sao Paulo, the highest price since the company formerly known as Perdigao SA began trading in 1997. Brazil’s benchmark Bovespa rose 0.4 percent.
The company, which supplies McDonald’s, Pizza Hut and Burger King restaurants, yesterday reported third-quarter net income of 365 million reais, or 42 centavos a share, from 211 million, or 24 centavos, a year earlier. Per-share profit exceeded the 37 centavos average of seven analysts’ estimates compiled by Bloomberg.
Brasil Foods, based in Sao Paulo, said in a separate statement yesterday that it would gain about 1 billion reais from cost cuts associated with its 2009 purchase of rival Sadia SA. The pretax gain between 2011 and 2013 is double the estimate of 500 million reais by 2012 the company issued in May of last year.
“Net earnings were a pleasant surprise,” Thiago Duarte, a Sao Paulo-based analyst with Banco BTG Pactual SA, wrote in a report today. “The new synergy guidance outweighs a soft third- quarter,” said Duarte, who rates the stock “buy.”
--Editors: Tina Davis, Jessica Resnick-Ault
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