BRF (NYSE:BRFS) Shares Gap Down on Disappointing Earnings

Brf S.A. (NYSE:BRFS)’s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $3.31, but opened at $3.09. BRF shares last traded at $3.15, with a volume of 879,619 shares changing hands.

The company reported $0.07 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.11). BRF had a net margin of 6.52% and a return on equity of 19.66%. The business had revenue of $3 billion during the quarter, compared to analysts’ expectations of $2.72 billion.

BRF Cuts Dividend

The company also recently disclosed a — dividend, which was paid on Thursday, January 9th. Shareholders of record on Wednesday, December 18th were given a $0.0217 dividend. This represents a dividend yield of 1.6%. The ex-dividend date of this dividend was Wednesday, December 18th. BRF’s dividend payout ratio is presently 18.60%.

Wall Street Analyst Weigh In

BRFS has been the subject of a number of research analyst reports. Citigroup raised BRF from a “hold” rating to a “strong-buy” rating in a report on Wednesday, January 22nd. StockNews.com upgraded shares of BRF from a “buy” rating to a “strong-buy” rating in a report on Wednesday, November 20th. Two equities research analysts have rated the stock with a hold rating, two have given a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $10.70.

Hedge Funds Weigh In On BRF

A number of hedge funds have recently modified their holdings of BRFS. Arrowstreet Capital Limited Partnership acquired a new stake in BRF during the 4th quarter worth $9,258,000. Millennium Management LLC boosted its stake in shares of BRF by 81.3% during the fourth quarter. Millennium Management LLC now owns 4,454,095 shares of the company’s stock worth $18,128,000 after buying an additional 1,996,890 shares during the period. Renaissance Technologies LLC grew its holdings in shares of BRF by 16.6% during the fourth quarter. Renaissance Technologies LLC now owns 7,682,476 shares of the company’s stock worth $31,268,000 after buying an additional 1,096,016 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its position in BRF by 660.0% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,208,375 shares of the company’s stock valued at $5,281,000 after acquiring an additional 1,049,373 shares during the period. Finally, Marshall Wace LLP raised its stake in BRF by 16.0% during the 4th quarter. Marshall Wace LLP now owns 4,975,651 shares of the company’s stock valued at $20,251,000 after acquiring an additional 687,243 shares during the last quarter. 4.76% of the stock is currently owned by hedge funds and other institutional investors.

BRF Stock Down 5.0 %

The company has a market capitalization of $3.40 billion, a price-to-earnings ratio of 7.31, a PEG ratio of 0.19 and a beta of 1.86. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.93 and a current ratio of 1.45. The business has a 50-day simple moving average of $3.77 and a two-hundred day simple moving average of $4.19.

BRF Company Profile

BRF SA raises, produces, and slaughters poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, pet food, and other products. The company provides frozen whole and cut chicken, frozen pork, and turkey, and halal products for Islamic markets; processed foods, such as marinated, frozen, seasoned whole, and cut chicken, roosters, sausages, ham products, bologna, frankfurters, salamis, bacons, cold meats, and other smoked products; and hamburgers, steaks, breaded meat products, kibbeh, and meatballs, as well as chicken sausages, hot dogs, and chicken bologna.