Gafisa Rallies in Sao Paulo on Surprise Second-Quarter Profit
Gafisa SA (GFSA3), the worst-performing Brazilian homebuilder in the past twelve months, rose the most on the benchmark Bovespa index after reporting a surprise profit in the second quarter.
Shares added 7.1 percent to 3.33 reais at 12:48 p.m. in Sao Paulo, pushing the five-day gain to 16 percent, the most since the week ended June 15. The Bovespa rose 0.2 percent.
Adjusted net income fell 9.6 percent to 22.7 million reais ($11.3 million) in the three months through June, Gafisa said in a regulatory filing. Analysts had expected an adjusted net loss of 21.2 million reais, according to the average of eight estimates compiled by Bloomberg.
“Gafisa sent an important sign to the market with this cash generation, withdrawing the possibility of lack of liquidity,” Rodolfo Amstalden, an analyst at equity consulting firm Empiricus Research, wrote in a note to clients dated today.
Gafisa has lost 51 percent in the past twelve months while the BM&FBovespa Real Estate index advanced 7.9 percent during that period.
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