Rossi Advances Most on Bovespa as Profit Beats Estimates
Stock Chart for Rossi Residencial SA (RSID3)
Homebuilder Rossi Residencial SA (RSID3) advanced, defying a rout in most Brazilian stocks, after the company reported a fourth-quarter profit that was higher than some analysts projected.
Shares gained 0.7 percent to 10.33 reais at the close of trading in Sao Paulo. The benchmark Bovespa index slid 1.5 percent.
Rossi’s fourth-quarter net income was 87 million reais ($48 million), the Sao Paulo-based company said in a regulatory filing yesterday. It was expected to post net income of 78.1 million reais excluding extraordinary items, the average estimate in a Bloomberg survey of 10 analysts.
“Results came in at reasonable levels, with margins improvements and sequential decreases in cash burn,” analysts at Credit Suisse including Guilherme Rocha wrote in a research note today.
Net income before adjustments was 91.5 million reais, according to the filing. The homebuilder’s net sales increased 29 percent to 916 million reais in the quarter, while new projects totaled 1.9 billion reais.
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