March 1 (Bloomberg) -- Multiplus SA, the frequent-flier unit of Latam Airlines Group SA’s Brazil subsidiary, dropped for the first time in three days after reporting fourth-quarter net income that trailed analysts’ estimates.
Shares fell 1.8 percent to 36.20 reais at 11:21 a.m. in Sao Paulo after tumbling as much as 3.4 percent. Multiplus pared its gain this week to 1 percent. The stock declined the most on the MSCI Brazil Industrials Index, which slid 0.6 percent.
Sao Paulo-based Multiplus reported fourth-quarter net income of 52.9 million reais ($26.6 million), according to a regulatory filing yesterday after the close of trading. That compares with 70.9 million reais a year earlier. The average estimate of nine analysts was for adjusted net income of 59.8 million reais.
“The decline is clearly negative for the company,” Bradesco BBI analysts including Carlos Firetti wrote in a research note published today. Billings to TAM, Latam’s Brazil subsidiary, reached a record low share, the analysts wrote.
Multiplus has dropped 25 percent since this year’s high reached on Jan. 3, while the Bovespa benchmark index has declined 11 percent.
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