TAM 3Q Net Income Beats Morgan Stanley Estimate

TAM's TAM 3Q10 net income of R$740 mn “beat our estimate of R$692 mn,” Morgan Stanley reports. Consensus was diffuse, with a median at R$87 mn. “Revenue of R$2.9 bn was up 23.4% on 23.6% traffic growth, in line with our estimate,” Morgan Stanley writes. “Lower-than-expected maintenance costs, due to the strong BRL and a tariff surcharge provision reversal of R$405 mn, put EBITDAR at R$975 mn, 4.9% above our forecast of R$930 mn.” TAM currently trades at $24.68.