JBS (NYSE:JBS) Posts Quarterly Earnings Results, Misses Estimates By $0.10 EPS

JBS (NYSE:JBS) posted its quarterly earnings data on Monday. The company reported $0.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.26 by ($0.10), Zacks reports. The company had revenue of $22.74 billion for the quarter. JBS had a net margin of 1.22% and a return on equity of 12.00%. The firm’s quarterly revenue was up .6% on a year-over-year basis. During the same quarter last year, the firm posted $0.54 earnings per share.

JBS Trading Up 5.2%

Shares of JBS stock opened at $13.13 on Tuesday. The stock has a 50 day moving average of $12.40 and a 200 day moving average of $14.02. The company has a debt-to-equity ratio of 2.51, a quick ratio of 0.77 and a current ratio of 1.53. The firm has a market capitalization of $10.19 billion, a price-to-earnings ratio of 12.71, a PEG ratio of 3.42 and a beta of -1.54. JBS has a fifty-two week low of $10.61 and a fifty-two week high of $18.65.

Key Stories Impacting JBS

Here are the key news stories impacting JBS this week:

• Positive Sentiment: JBS reported third-quarter sales of $22.74 billion, up 0.6% year over year. Reuters also noted better U.S. beef results, though they were not enough to offset weakness elsewhere. Reuters report
• Neutral Sentiment: The company agreed to acquire Flora, a Brazilian consumer-products business, for $542 million. The deal would diversify JBS into beauty and personal care and expand household-cleaning products, but Flora is owned by JBS’s controlling shareholder, making the related-party transaction a consideration for investors. JBS acquisition announcement
• Negative Sentiment: Third-quarter EPS was $0.16, below the $0.26 consensus and down from $0.52 a year earlier. Net profit fell to $164.4 million from $580.9 million, and adjusted EBITDA declined to $1.18 billion from $1.84 billion, reflecting a difficult operating environment. Wall Street Journal report
• Negative Sentiment: China’s beef import quotas are cited as a headwind for JBS’s meatpacking business, raising concern about sales and margins in an important market. Barron’s market report

Insider Buying and Selling

In other news, CFO Guilherme Cavalcanti sold 183,501 shares of the company’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $13.85, for a total value of $2,541,488.85. The sale was disclosed in a document filed with the SEC, which is available at the SEC website.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on JBS shares. Stephens lowered their price target on shares of JBS from $18.00 to $17.00 and set an “overweight” rating on the stock in a research report on Monday, August 17th. Wall Street Zen lowered shares of JBS from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Barclays lowered their target price on JBS from $21.00 to $20.00 and set an “overweight” rating on the stock in a report on Thursday, July 16th. JPMorgan Chase & Co. dropped their price target on JBS from $18.00 to $17.50 and set an “overweight” rating for the company in a research report on Thursday, October 22nd. Finally, UBS Group increased their price target on JBS from $17.00 to $17.50 and gave the company a “buy” rating in a report on Monday, August 24th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $18.10.

About JBS

JBS SA is a global food company focused on processing beef, pork, poultry and lamb. Its products include fresh and frozen meat, prepared and packaged foods, and value-added food products sold under brands such as Swift, Pilgrim’s and Seara. The company also produces ingredients and other products from animal byproducts, including leather and collagen.

Founded in 1953 in Anápolis, Brazil, JBS has grown into an international business with operations across the Americas, Europe, Australia and other markets.