Breaking News

Tweet TWEET

Hypermarcas Jumps to 22-Month High as Profit Beats Estimates

Hypermarcas SA (HYPE3), the Brazilian maker of more than 190 consumer products from diapers to generic drugs, rose to the highest since May 2011 after quarterly profit beat estimates as sales of consumer goods boosted revenue.

Shares rallied 2.8 percent to 18.10 reais at the close of trading in Sao Paulo. The benchmark Bovespa index gained 1.6 percent.

Adjusted net income climbed to 124.7 million reais ($63.7 million) in the fourth quarter from 49.6 million reais a year earlier, according to data compiled by Bloomberg after the company released results today. The average forecast of five analysts was 90.1 million reais.

Those were “solid” results “on the still-strong pace of pharma sales and at last a significant improvement in the growth of consumer goods,” Juliana Rozenbaum and Vitor Paschoal, analysts at Itau BBA, wrote in a research note to clients today.

Sales jumped 62 percent to 1.03 billion reais in the fourth quarter. That compares with an average estimate of 1.02 billion reais of eight analysts surveyed by Bloomberg.

Hypermarcas gained 8.9 percent this year, while the Bovespa fell 3.5 percent in that 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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to 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.