Cetip Gains Most in Six Weeks as Earnings Beat Forecasts

Cetip SA - Balcao Organizado de Ativos e Derivativos (CTIP3), Brazil’s biggest securities clearinghouse, surged in Sao Paulo after fourth-quarter earnings beat analysts’ forecasts.

The stock jumped 6.3 percent to 26.15 reais at 4:15 p.m. New York time. That’s the largest gain since Feb. 11, and a record price since being listed in October 2009.

Cetip posted profit adjusted for some items of 65 million reais ($39.7 million), surpassing the average estimate of 53.5 million reais in a Bloomberg survey of four analysts. Net revenue climbed 60 percent to 90.6 million reais, according to a statement posted on the company’s website last night. Net income without adjustments was 22.2 million reais, little changed from a year earlier.

“Robust top-line expansion, driven by stronger volumes in several lines, was the main driver for earnings growth,” Marcelo Telles, an analyst at Credit Suisse Group AG in Sao Paulo, wrote in a note to clients today. “Cetip should continue to benefit from the promising outlook for volumes.”

Cetip on Dec. 29 completed its 2 billion-real purchase of GRV Solutions SA, a provider of credit-risk management services, according to the statement. The deal was first disclosed earlier that month.

The acquisition will boost Cetip’s earnings this year, Telles said. He rates the stock “outperform.”

To contact the reporter on this story: Alexander Cuadros in Sao Paulo at acuadros@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulous@bloomberg.net

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