BRF S.A. Q2 Earnings in the Cards: Things to Consider

BRF S.A. BRFS is likely to register bottom-line growth when it reports second-quarter 2024 earnings on Aug 14. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 7 cents per share. The figure indicates improvement from a loss of 10 cents reported in the year-ago quarter.

The company's top line is likely to decline year over year. The consensus mark for quarterly revenues is pegged at $2.6 billion, indicating a decline of 2.6% from the prior-year quarter's reported figure. BRF, one of the largest food companies globally, delivered an earnings surprise of 50% in the last reported quarter.

Things To Consider

The company has been reaping the benefits of ongoing improvements from the BRF+ program, which emphasizes enhanced commercial execution, cost efficiency and operational performance. BRF's commitment to value added and innovative products is supporting competitive pricing and bolstering market resilience. Feed costs are expected to remain stable in the near term, aiding in effective cost management and profitability. The continuation of these factors is likely to have driven the company's performance in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model doesn't conclusively predict an earnings beat for BRF this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

BRF carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Some Stocks With the Favorable Combination

Here are three companies worth considering, as our model shows that these also have the correct combination to beat on earnings this time:

Ollie's Bargain currently has an Earnings ESP of +2.38% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 78 cents suggests an increase of 16.4% from the year-ago reported number.

OLLI's top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $562.4 million, suggesting an increase of 9.3% from the prior-year quarter's tally. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.

Costco Wholesale Corporation currently has an Earnings ESP of +0.67% and a Zacks Rank of 3. The company is expected to register top- and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST's quarterly revenues is pegged at $80.1 billion, suggesting growth of 1.4% from the year-ago quarter's reported figure.

The consensus estimate for Costco's earnings has increased by a penny in the past 30 days to $5.02. The consensus mark for earnings suggests growth of 3.3% from the year-ago quarter's reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.

Coty COTY has an Earnings ESP of +22.73% and a Zacks Rank of 3 at present. The company is expected to register top- and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY's quarterly earnings has remained unchanged in the past 30 days at 5 cents. The consensus mark for earnings indicates a 400% surge from the figure reported in the year-ago quarter. 

The consensus estimate for quarterly revenues is pegged at $1.38 billion, indicating a rise of 1.8% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 22.2%.

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