Hites Slumps in Chile for Third Day on Lower Earnings
Empresas Hites SA (HITES), Chile’s fifth- largest department store operator, was headed for its biggest three-day drop in a year as analysts said a measure of operating profit was below their expectations.
Hites fell 3.2 percent to 557 pesos at 1:28 p.m. in Santiago and has tumbled 11 percent over three days, the biggest such decline on a closing basis since October 2011.
Earnings before interest, tax, depreciation and amortization was 10.8 billion pesos ($22.9 million) in the fourth quarter, according to a March 7 filing from the Santiago- based company. The figure, known as Ebitda, was 0.5 percent lower than estimated by Bice Inversiones. Ebitda as a percentage of revenue fell to 13.5 percent from 14.1 percent.
“The lower-than-expected Ebitda explains the fall since the report,” Aldo Morales, an analyst at Bice, said today in a telephone interview.
The stock had rallied 53 percent this year prior to the earnings report, and now investors are “taking some profits,” Morales said.
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