CCR Rises as Profit Jumps on Traffic Increase: Sao Paulo MoverDenyse Godoy
CCR SA, Latin America’s second-biggest highway manager by market value, rose the most in six weeks as profit beat forecasts amid increased traffic and the company added to its dividend payouts for 2012.
The shares advanced 1.6 percent to 19.60 reais at the close of trading in Sao Paulo, the most since Feb. 6. The benchmark Bovespa index slid 1.1 percent.
Adjusted net income for the fourth quarter of 2012 rose 18 percent from a year earlier to 347.5 million reais ($175.1 million), according to data compiled by Bloomberg. That compares with an average estimate of 328.1 million reais among seven analysts surveyed by Bloomberg. The company released its results in a regulatory filing late yesterday.
CCR, based in Sao Paulo, reported a 3.1 percent increase in highway traffic, while revenue increased 17 percent. Brazilian industrial production declined 0.6 percent during the period, according to the filing.
“Our positive stance on the toll-road sector is based on its resilience, strong cash flow generation and investment opportunities,” Renata Faber and Thais Cascello, analysts at the investment bank Itau BBA, said yesterday in a note to clients. They have a buy recommendation on the stock with a price target of 22 reais for the end of 2013.
CCR, which had distributed 1 billion reais of dividends in 2012 through October, will pay an additional 100.8 million reais for the year, according to the filing.