Cetip Gains Most in Six Weeks as Earnings Beat Forecasts

Cetip SA - Balcao Organizado de Ativos e Derivativos, Brazil’s biggest securities clearinghouse, surged in Sao Paulo after fourth-quarter earnings beat analysts’ forecasts.

The stock jumped 6.3 percent to 26.15 reais at 4:15 p.m. New York time. That’s the largest gain since Feb. 11, and a record price since being listed in October 2009.

Cetip posted profit adjusted for some items of 65 million reais ($39.7 million), surpassing the average estimate of 53.5 million reais in a Bloomberg survey of four analysts. Net revenue climbed 60 percent to 90.6 million reais, according to a statement posted on the company’s website last night. Net income without adjustments was 22.2 million reais, little changed from a year earlier.

“Robust top-line expansion, driven by stronger volumes in several lines, was the main driver for earnings growth,” Marcelo Telles, an analyst at Credit Suisse Group AG in Sao Paulo, wrote in a note to clients today. “Cetip should continue to benefit from the promising outlook for volumes.”

Cetip on Dec. 29 completed its 2 billion-real purchase of GRV Solutions SA, a provider of credit-risk management services, according to the statement. The deal was first disclosed earlier that month.

The acquisition will boost Cetip’s earnings this year, Telles said. He rates the stock “outperform.”