Ahead Of The Bell: Bristow Group

HARTFORD, Conn. (AP) — The purchase by Bristow Group Inc. of a stake in a Brazilian helicopter and aviation company will help it expand its base in Brazil, an analyst said Thursday as he raised his profit estimates for the helicopter airlift services company.

Analyst Judson E. Bailey of Jefferies & Co. increased his fiscal 2010 earnings estimate to $2.69 per share from $2.59 per share and raised his estimate for 2011 to $2.96 per share from $2.85 per share.

Analysts surveyed by Thomson Reuters expect earnings next year of $2.59 per share and $2.85 in 2011.

The Houston company said Wednesday it acquired a 42.5 percent stake in Lider Aviacao Holding SA, which provides helicopter and executive aviation services. It agreed to pay $174 million for the stake and sold five aircraft to Lider for $55 million, reducing its net cash outlay to $119 million.

With a recent large oil discoveries off Brazil, the nation's market is poised for substantial growth over the next decade, Bailey said in a note to investors. In addition, Lider is likely to become a key provider of large helicopters in Brazil, he said.