Dasa Falls Most Among Brazilian Small Caps After Earnings Miss

Diagnosticos da America SA, the Brazilian medical diagnostics provider that’s fallen in half since reaching a record high in 2011, led declines among the country’s small-capitalization stocks after reporting a second-quarter profit that trailed analysts’ estimates.

Dasa, as the company is also known, plunged 3.7 percent to 11.65 reais at 12:55 p.m. in Sao Paulo. It was the worst performance on the BM&FBovespa Small Cap index, which slipped 0.4 percent.

Second-quarter adjusted net income was 35.2 million reais ($15.3 million), compared with an average estimate of 47.2 million reais, according to data compiled by Bloomberg after Dasa released results yesterday. Earnings before interest, taxes, depreciation and amortization, known as Ebitda, were 110.8 million reais while the Ebitda margin fell to 17.6 percent from 18 percent a year earlier.

“Although Dasa is still in the middle of a turnaround process, the failure to improve margins from the weak base in the second quarter of 2012 is worrisome, demonstrating that a more significant recovery should still take a long time,” Rafael Frade, an analyst at Banco Bradesco SA’s brokerage unit, wrote in a note to clients today. “We remain cautious about the name and expect a negative reaction in the short term.”

Dasa has lost 12 percent this year while the Ibovespa (IBOV) declined 17 percent.

To contact the reporter on this story: Julia Leite in New York at jleite3@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.