Gafisa SA (GFSA3) sank the most on Brazil’s benchmark Ibovespa index after the homebuilder reported a surprise loss for a second consecutive quarter as customers facing difficulty getting financing canceled sales.
The shares slumped 4.5 percent to 4.02 reais at 11:50 a.m in Sao Paulo in the biggest intraday drop since April 17. The Ibovespa declined 0.9 percent.
Gafisa’s adjusted net loss was 55.5 million reais ($27.5 million) in the three months through March, according to data compiled by Bloomberg after the company released results late on May 10. The average estimate of six analysts surveyed by Bloomberg was for adjusted net income of 10.8 million reais.
Canceled sales totaling 482 million reais accounted for the loss in the most recent quarter, Sao Paulo-based Gafisa said in a regulatory filing. Gafisa Chief Executive Officer Duilio Calciolari said on a conference call that while cancellations are still significant, they are expected to be lower in the second quarter.
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