MRV Falls as Brazilian Homebuilder’s Sales Drop: Sao Paulo Mover
MRV Engenharia (MRVE3) & Participacoes SA, Brazil’s third-biggest homebuilder by revenue, fell the most in two months after first-quarter sales decreased.
First-quarter contracted sales declined 2 percent to 815 million reais ($434 million), compared with the same period last year, MRV said in a regulatory filing yesterday. New projects fell 38 percent to 644 million in the quarter, according to the filing.
The homebuilder’s “weaker-than-expected” preliminary numbers were “mainly attributable to the company’s focus on the sale of larger projects, which tend to post a soft sales performance,” Banco Itau BBA SA analysts David Lawant, Enrico Trotta and Vivian Salomon wrote in a report dated yesterday. They maintained a recommendation equivalent to a buy.
MRV has gained 21 percent this year, compared with a 15 percent advance for the BM&FBovespa Real Estate Index. (IMOBBV)
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