Hypermarcas SA, the Brazilian maker of more than 190 consumer products from diapers to generic drugs, rose to a two-month high after second-quarter earnings exceeded analysts’ estimates.
The shares rallied 1.9 percent to 16.90 reais at the close of trading in Sao Paulo, the highest since June 4. Brazil’s benchmark Ibovespa index lost 0.1 percent.
Earnings before interest, taxes, depreciation and amortization rose 12 percent to 258 million reais ($112 million) in the three months through June from a year earlier, according to a regulatory filing on August 2 after the market closed. That compares with an average estimate of 246.9 million reais among eight analysts surveyed by Bloomberg. The increase prompted the investment bank Itau BBA to raise its recommendation on the stock to the equivalent of buy.
“The solid second-quarter results made us more confident in the investment story of Hypermarcas, one of the few companies in our space where consensus might need to revise numbers upwards,” Vitor Paschoal and Rachel Rodrigues, analysts at the bank, wrote in a note to clients today.
Sao Paulo-based Hypermarcas has gained 1.7 percent this year, while the Ibovespa slumped 21 percent.