April 18 (Bloomberg) -- MRV Engenharia & Participacoes SA, Brazil’s third-biggest homebuilder by revenue, fell the most in two months after first-quarter sales decreased.
Shares dropped 5.1 percent to 12.95 at the close in Sao Paulo, the steepest one-day drop since Feb. 17. It was the biggest loser on the BM&FBovespa Real Estate Index, which advanced 0.4 percent.
First-quarter contracted sales declined 2 percent to 815 million reais ($434 million), compared with the same period last year, MRV said in a regulatory filing yesterday. New projects fell 38 percent to 644 million in the quarter, according to the filing.
The homebuilder’s “weaker-than-expected” preliminary numbers were “mainly attributable to the company’s focus on the sale of larger projects, which tend to post a soft sales performance,” Banco Itau BBA SA analysts David Lawant, Enrico Trotta and Vivian Salomon wrote in a report dated yesterday. They maintained a recommendation equivalent to a buy.
MRV has gained 21 percent this year, compared with a 15 percent advance for the BM&FBovespa Real Estate Index.
To contact the reporter on this story: Karen Eeuwens in London at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com