Smiles SA, the frequent-flier unit of Gol Linhas Aereas Inteligentes SA, posted the biggest two-day rally in three weeks after earnings beat analysts’ estimates.
The shares surged 4.2 percent to 27 reais at the close of trading in Sao Paulo, pushing gains in the past two sessions to 11 percent, the most in such a span since July 23. The Ibovespa stock benchmark climbed 0.9 percent today.
Smiles reported adjusted net income of 48.3 million reais ($21.3 million) in the second quarter, compared with an average estimate for profit of 38.9 million reais, according to data compiled by Bloomberg. The “strong” second-quarter results at the Sao Paulo-based company boost the outlook for the rest of the year, Rafael Frade and Carlos Firetti, analysts at Banco Bradesco SA’s brokerage unit, wrote in a note to clients today.
“We expect the company to post strong growth in the coming quarters,” they wrote.
Smiles rose 6.1 percent on Aug. 9 as competitor Multiplus SA, which reported results for the three months ended in June on Aug. 8 after the market close, beat estimates for the first time in three quarters, according to data compiled by Bloomberg.
Smiles, which became public in April, has nine buy recommendations and two sells, according to data compiled by Bloomberg. Multiplus has six buys, eight holds and one sell.