Jeronimo Martins Shares Decline After Earnings Miss EstimatesHenrique Almeida
Jeronimo Martins SGPS SA, Portugal’s biggest retailer, fell the most since in seven months after declining consumption at home and a slowdown in Poland led to earnings that missed analysts’ estimates.
The stock declined as much as 7.1 percent, the biggest intraday drop since July 25. The shares were down 5.5 percent at 15.22 euros as of 10:30 a.m.
Same-store sales at Jeronimo Martin’s Pingo Doce chain in Portugal fell 2.6 percent in the fourth quarter after rising 0.1 percent in the first nine months of last year, the Lisbon-based company said in a statement today. Net income in 2012 rose 5.9 percent to 360.4 million euros, missing the 387.5 million-euro average estimate of analysts surveyed by Bloomberg.
“The news today is earnings which were lower than expected,” Andrew Gwynn, an analyst at Exane BNP Paribas, said in a note. “We would expect negative revisions to consensus today.”
Jeronimo Martins said it expects “double-digit” sales growth this year at constant exchange rates as it opens 30 to 40 stores in Colombia, its third market after Portugal and Poland.
“In the context of declining consumption in Portugal and the slowdown in economic growth in Poland, the group delivered its ambition of growing ahead of the market,” Jeronimo Martins said.
The company will propose a gross dividend of 29.5 euro-cents a share after paying an extraordinary dividend of 23.9 cents a share in December.