Localiza Surges for a Second Day Ahead of Earnings
Localiza Rent a Car SA, Latin America’s biggest car-rental company, posted the biggest two-day gain in a year ahead of an earnings report to be released today after the market closes.
Localiza gained 4.5 percent in Sao Paulo to 26.17 reais at the 3:15 p.m. New York time close and is up 8.1 percent since Jan. 28. The stock surged 39 percent last year, compared with a 1 percent increase for the benchmark Bovespa index.
Latin America’s biggest economy grew 7.5 percent in 2010, according to the median forecast in a Bloomberg survey of 18 analysts. That likely helped Localiza’s fourth-quarter profit increase 86 percent from a year earlier, Banco Santander SA said.
“Localiza should continue to benefit from favorable economic momentum sustaining earnings growth over the next few quarters,” Caio Dias, an analyst at Santander in Sao Paulo, wrote in a note to clients today. “We expect a significant net income expansion.”
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