Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Urbi Extends Monthly Plunge as Earnings Miss Analyst Estimates

Feb. 28 (Bloomberg) -- Urbi Desarrollos Urbanos SAB, a Mexican homebuilder, dropped the most on the country’s benchmark stock index after quarterly profit fell 39 percent short of analysts’ estimates.

The stock sank 11 percent to 4.25 pesos at 1:36 p.m. in Mexico City trading, extending its monthly decline to 43 percent. Trading volume was more than three times the three-month average.

Net income was 291.6 million pesos ($22.9 million) in the fourth quarter, Mexicali-based Urbi said in a statement yesterday, trailing the average estimate of four analysts surveyed by Bloomberg for a profit of 477.8 million pesos. The company has negotiated changes to loan agreements and is in compliance with financial and debt-limit requirements, according to the statement.

“Despite the company reaching an agreement with its banks and renegotiating its covenants and waivers, poor management has led to cash constraints and higher working capital requirements with no growth,” Itau BBA analysts led by Vivian Salomon wrote in a report dated today. They rate the stock the equivalent of sell.

The company’s cash fell by 58 percent during the quarter to 2.47 billion pesos, according to the statement.

To contact the reporter on this story: Danielle Verbrigghe in New York at dverbrigghe@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.