Cielo Rises to Record as Profit Beats Analysts’ Estimates

Cielo SA, Brazil’s biggest payments processor, rose to a record in Sao Paulo after first-quarter profit increased more than analysts estimated.

The shares climbed 1.2 percent to 54.64 reais at 10:44 a.m., the highest price since the Barueri-based company went public in 2009. Net income advanced 13 percent to 640.9 million reais ($319 million), or 98 centavos a share, Cielo said yesterday in a regulatory filing. Nine analysts in a Bloomberg survey estimated adjusted earnings of 610.6 million reais.

Cielo, led by Chief Executive Officer Romulo de Mello Dias, 51, boosted revenue after acquiring Merchant e-Solutions in July for $670 million to expand in the U.S. Net operating revenue increased to 1.55 billion reais from 1.2 billion reais a year earlier.

“The 2013 first-quarter net income was strong,” Banco Itau BBA analysts including Regina Sanchez wrote in a report yesterday. “The results do not imply an upside to our short-term forecasts, but we expect consensus to adjust numbers up and Cielo to perform accordingly.”

Cielo is maintaining its forecast that net income will grow 7 percent to 10 percent in 2013, though profit rose faster in the first quarter, Dias said today on a conference call.

“It’s too early to revise the guidance,” he said.

Transaction volume climbed to 98.8 billion reais from about

88.1 billion reais a year earlier, according to the filing.

Cielo has gained 15 percent this year, compared with a decline of 8.1 percent for the benchmark Ibovespa index.