Brasil Foods Misses Where It Counts

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Brasil Foods (NYS: BRFS) reported earnings on March 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Brasil Foods met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
Brasil Foods chalked up revenue of $3.81 billion. The 13 analysts polled by S&P Capital IQ predicted a top line of $3.83 billion on the same basis. GAAP reported sales were 1.2% lower than the prior-year quarter's $3.85 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.21. The four earnings estimates compiled by S&P Capital IQ predicted $0.41 per share on the same basis. GAAP EPS of $0.08 for Q4 were 68% lower than the prior-year quarter's $0.25 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 27.4%, 130 basis points worse than the prior-year quarter. Operating margin was 8.6%, 190 basis points worse than the prior-year quarter. Net margin was 1.7%, 390 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.67 billion. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $15.27 billion. The average EPS estimate is $1.57.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 233 members out of 247 rating the stock outperform, and 14 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Brasil Foods a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brasil Foods is outperform, with an average price target of $22.37.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.

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