May 10 (Bloomberg) -- Minerva SA slumped the most in two weeks after the Brazilian meatpacker’s earnings trailed analysts’ estimates for the fourth time in five quarters.
The shares fell 3.6 percent to 11.47 reais at the close of trading in Sao Paulo, the biggest one-day drop since April 26. Trading volume was 2.9 times the three-month daily average, according to data compiled by Bloomberg. The Ibovespa stock benchmark declined 0.6 percent.
First-quarter adjusted net income was 5.57 million reais ($2.75 million), according to data compiled by Bloomberg after the company released results yesterday after the market close. The average estimate of seven analysts surveyed by Bloomberg was for an adjusted profit of 16.6 million reais.
“We expect the stock to react negatively to first-quarter results, which may start to call into question prior assumptions of a clearer positive outlook for the year,” BTG Pactual analysts Thiago Duarte, Fabio Monteiro and Enrico Grimaldi wrote in a research note today. “But we still think it’s too early to say if this is the case.”
BTG has a buy recommendation for Minerva. The Barretos, Brazil-based company’s shares have gained 2 percent this year while the Ibovespa has fallen 9.6 percent.
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