April 28, 2010 / 3:57 PM / 8 years ago

IESI-BFC shares rise to their highest in more than a year

BANGALORE, April 28 (Reuters) - Shares of Canadian waste management company IESI-BFC Ltd BIN.TO rose to their highest levels in more than a year Wednesday, a day after the company posted better-than-expected quarterly results.

Shares of the company rose as much as 7 percent to C$19.95 on the Toronto Stock Exchange. They were trading at C$19.90 in afternoon trade.

“Strong quarter, better-than-expected organic revenue growth and pricing story remain intact,” BMO Capital Markets analyst Jason Granger said.

He also said Waste Services Inc WSII.O, which IESC-BFC plans to acquire by the end of the second quarter, also posted “good” results.

He said the acquisition of Waste Services should open up opportunities for the Canadian company to continue to increase its margins in the United States.

The company’s first-quarter results benefitted from recycled commodity prices, which are not going to be as strong for the rest of the year, the analyst said.

But he expects strong industrial service revenue to offset weakness in recycled commodities.

“We are at a tipping point here or turn in the industrial services line, which is the area that has the most torque in their business,” he said. (Reporting by Aftab Ahmed in Bangalore; Editing by Don Sebastian) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5828; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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