Tecnisa SA (TCSA3), a Brazilian homebuilder, fell the most in two months after reporting that sales fell 43 percent in the fourth quarter.
Shares slid 3.9 percent to 7.72 reais at the close of trading in Sao Paulo, the steepest one-day decline since Nov. 14. It was the worst performance on the BM&FBovespa Real Estate index, which rose 0.6 percent.
Sales fell to 230 million reais ($113.2 million) in the three months through December 2012, from 403.7 million reais in the same period one year earlier, Sao Paulo-based Tecnisa said in a Jan. 11 regulatory filing. The decline was partially explained by the start during the quarter of The Five, a hotel, shopping, residential and commercial complex that will account for 290 million reais of sales when completed, Tecnisa said.
“The numbers were weak,” David Lawant, Enrico Trotta and Vivian Salomon, analysts at the investment bank Itau BBA, wrote in a note to clients dated yesterday. “Although we still see the stock as an interesting way to play the Brazilian real estate story, we are maintaining a more conservative stance on the name.” Itau has the equivalent of a hold recommendation on the stock.
Tecnisa’s sales totaled 1.1 billion reais in 2012. That compares with Itau’s estimate of 1.5 billion reais, according to yesterday’s report.
Tecnisa declined 20 percent in 2012, while the real estate index gained 22 percent during that period.
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