July 29 (Bloomberg) -- Empresas ICA SAB, Mexico’s largest construction company, advanced the most in a month after reporting a second-quarter sales decrease that was smaller than analysts had projected.
The shares surged 3.6 percent to 24.66 pesos at 1:01 p.m. in Mexico City, the biggest gain on a closing basis since June 26. Today’s rally was the best performance on Mexico’s benchmark IPC, which fell 1.2 percent.
ICA said July 26 that revenue in the three months through June fell 34 percent from a year earlier to 8.21 billion pesos. The average estimate of four analysts surveyed by Bloomberg was for sales of 8.05 billion pesos. The company’s shares have plunged 26 percent since May 17, when Moody’s Investors Service lowered the builder’s debt to B2, five levels below investment grade, citing delays in public-works spending and saying further cuts were possible.
“This gives ICA some breathing room,” Esteban Polidura, an analyst at Deutsche Bank AG in Mexico City, said in a telephone interview. “After these numbers, a change of outlook to stable would be possible.”
The company posted a net loss of 500.9 million pesos, its biggest on a quarterly basis since 2007.
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