Morgan Stanley Forecasts TAM 3Q10e EPADS of $2.53

When TAM TAM report its 3Q10 results on November 12, Morgan Stanley anticipates 3Q10e EPADS of US$2.53. “Revenue of R$2,930 mn is forecast, up 23.0% y-y, driven by strong traffic growth from both domestic and international segments, up 24.5% and 20.6% y-y, respectively,” Morgan Stanley writes. “On the cost line, TAM should report part of the announced reversion of a tax provision of R$585.9 mn (R$386.7 mn after income tax), which followed a court decision releasing the airline from paying an additional 1% tax on domestic tickets.” TAM currently trades at $24.66.