Duratex SA, a manufacturer of wooden boards for use in furniture and housing, rose to a 10-week high after reporting fourth-quarter earnings that exceeded analysts’ estimates.
Shares rose 2.4 percent to 15.05 reais at the close of trading in Sao Paulo, the highest since Dec. 18. Trading volume was 1.6 times of the average over the past three months, according to data compiled by Bloomberg.
Fourth-quarter adjusted net income was 131.3 million reais ($66.2 million), according to data compiled by Bloomberg after the company reported earnings on Feb. 22. The average estimate of five analysts was adjusted profit of 107.2 million reais.
“Despite being a seasonally weaker period, Duratex managed to deliver its best quarterly results ever,” Banco Santander Brasil SA analysts Felipe Reis and Alex Sciacio wrote in a research note. “We reiterate Duratex as our top pick within the forest products sector on the back of very strong quarterly figures that far exceeded our estimates and consensus.”
Duratex has climbed 55 percent in the past year, while the benchmark Bovespa stock index has fallen 13 percent.