Hites Slumps in Chile for Third Day on Lower Earnings

Empresas Hites SA (HITES), Chile’s fifth- largest department store operator, was headed for its biggest three-day drop in a year as analysts said a measure of operating profit was below their expectations.

Hites fell 3.2 percent to 557 pesos at 1:28 p.m. in Santiago and has tumbled 11 percent over three days, the biggest such decline on a closing basis since October 2011.

Earnings before interest, tax, depreciation and amortization was 10.8 billion pesos ($22.9 million) in the fourth quarter, according to a March 7 filing from the Santiago- based company. The figure, known as Ebitda, was 0.5 percent lower than estimated by Bice Inversiones. Ebitda as a percentage of revenue fell to 13.5 percent from 14.1 percent.

“The lower-than-expected Ebitda explains the fall since the report,” Aldo Morales, an analyst at Bice, said today in a telephone interview.

The stock had rallied 53 percent this year prior to the earnings report, and now investors are “taking some profits,” Morales said.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

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

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