Localiza Jumps in Sao Paulo After Profit Beats Estimates

Localiza Rent a Car SA, Latin America’s largest car-rental company, surged to a one-month high after reporting fourth-quarter profit that beat estimates.

Shares rose 2.4 percent to 37.79 reais at the close of trading in Sao Paulo, the highest level since Jan. 4. Trading volume was 2.6 times the three-month average, according to data compiled by Bloomberg. The benchmark Bovespa index dropped 0.2 percent.

Localiza’s adjusted net income rose 9.4 percent from a year earlier to 86.1 million reais ($43.3 million), data compiled by Bloomberg show. The average estimate among six analysts surveyed by Bloomberg was for adjusted profit of 82.5 million reais.

Localiza gained 28 percent in the past year, while the Bovespa fell 8.9 percent during that same period.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.