Brazilian homebuilder Tecnisa SA headed for a seven-week low after posting a fourth-quarter loss, missing analysts’ estimates for a profit.
Tecnisa dropped 3.2 percent to 9.42 reais at 11:14 a.m. in Sao Paulo. A close at that level would be the lowest since Jan. 31. It was the worst performer on the BM&FBovespa Small Cap index, which slid 0.5 percent.
The company had a loss of 32.1 million reais ($17.6 million) in the fourth quarter of 2011, according to a regulatory filing yesterday. The average estimate of three analysts in a Bloomberg survey was for an adjusted profit of 51 million reais. Contracted sales fell 48 percent to 403.8 million reais in the quarter from a year earlier, the company said.
Tecnisa attributed the loss partly to lower revenue and a 63 million-reais revenue reversal because of an adjustment in the budget of some developments, according to the filing.
Results “were weak,” analysts Guilherme Rocha, Daniel Gasparete and Vanessa Quiroga at Credit Suisse Group AG wrote in a note today. “Non-expected revenue reversion and extra provisions coupled to management’s poor disclosure on the issues may continue to keep investors away from the stock until more clarification is shared.”
They have the equivalent of a buy recommendation for the stock.