Pao de Acucar Advances as Quarterly Sales Beat EstimatesJulia Leite
Cia. Brasileira de Distribuicao Grupo Pao de Acucar, the biggest supermarket chain in Brazil, rose to a six-week high after second-quarter sales beat the estimate of analysts.
The shares gained 0.4 percent to 103 reais at the close of trading in Sao Paulo, the highest since June 10. The benchmark Ibovespa gauge fell 0.9 percent.
Sales rose to 13.4 billion reais ($6 billion) in the second quarter from a year earlier, the Sao Paulo-based company said in a regulatory filing. That compares with an average estimate of 13.2 billion reais among analysts surveyed by Bloomberg. Adjusted net income climbed to 327 million reais, higher than the average estimate of 231.2 million reais.
Pao de Acucar is “a safe option for retail in Brazil, with strong growth,” Ricardo Correa, an analyst at brokerage Ativa, said in an e-mailed research note to clients today. Second-quarter adjusted results were “positive,” according to Correa, who reiterated that the stock is a top retail pick.
The shares have climbed 14 percent this year, while the Ibovespa has lost 21 percent.