Ibovespa Futures Decline as Light, Gafisa Results Miss Estimates

Ibovespa futures dropped after homebuilder Gafisa SA (GFSA3) and power utility Light SA (LIGT3) posted first-quarter earnings that were below analysts’ estimates.

Farm company Vanguarda Agro SA (VAGR3) may also be active after posting a net loss of 55.4 million reais ($27.5 million) in the three months ending March. Oil company HRT Participacoes em Petroleo SA (HRTP3) may move after Chief Executive Officer Marcio Mello resigned.

Ibovespa futures contracts expiring in June lost 0.3 percent to 54,790 at 9:11 a.m. in Sao Paulo. The real climbed 0.3 percent to 2.0154 per dollar.

Gafisa said in a regulatory filing net loss in the first quarter was 55.5 million reais. Analysts surveyed by Bloomberg had forecast an adjusted net income of 10.8 million reais. Net income for Light was 78.6 million reais, which compares with an average estimate for adjusted profit of 123 million reais.

Twenty-six of the 45 companies on the Ibovespa that have already reported first-quarter earnings missed analysts estimates, according to data compiled by Bloomberg.

The Ibovespa has lost 9.6 percent this year, the worst performer after Colombia’s IGBC index among 19 major emerging markets, according to data compiled by Bloomberg. Brazil’s benchmark equity gauge trades at 12.2 times analysts’ earnings estimates for the next four quarters, compared with 10.8 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 7.18 billion reais on May 10, compared with a daily average of 7.71 billion reais this year through April 30, according to data compiled by the exchange.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

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

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