Tecnisa Declines on Bigger-Than-Expected Loss: Sao Paulo MoverDenyse Godoy
Brazilian homebuilder Tecnisa SA fell to a one-month low after reporting a bigger-than-expected loss, the sixth consecutive quarter in which earnings have missed analysts’ estimates.
Shares slid 2.1 percent to 8.32 reais at the close of trading in Sao Paulo, the lowest since Feb. 26. Trading volume was 3.8 times the three-month daily average, according to data compiled by Bloomberg.
Tecnisa had a net loss of 180.1 million reais ($89.5 million) in the three months through December, according to data compiled by Bloomberg after the Sao Paulo-based homebuilder reported earnings late on March 22. That compares with an average loss estimate of 650,000 reais from four analysts surveyed by Bloomberg.
Sales were weak and “costs are still reason for concern,” Wesley Bernabe, an analyst at Banco do Brasil SA, wrote in a note to clients dated today. The 56 percent increase in costs in the fourth quarter of 2012 from the same period in 2011 was caused by “advertising expenses to try to boost sales, a trend that should continue given the low speed of sales,” he wrote.
Revenue declined 16 percent to 309.4 million reais in the three months through December from the fourth quarter of 2011, data compiled by Bloomberg show.
Tecnisa has risen 3.2 percent this year while the BM&FBovespa Real Estate index declined 10 percent during that period.