CEZ Falls Most in 2 Weeks on Profit Target Cut: Prague Mover
CEZ AS (CEZ) fell the most in more than two weeks after the biggest Czech power utility missed analysts’ estimates for third-quarter profit and lowered its earnings forecast for the full year.
The shares dropped as much as 2.9 percent in Prague trading and closed 1.1 percent lower at 715 koruna, the biggest daily decline since Oct. 23. CEZ was the most-traded stock today in the 13-member PX (PX) equity index, which slid 0.4 percent.
Net income for July to September was 6.6 billion koruna ($332 million), Prague-based CEZ said today, below the 8.5 billion-koruna median estimate of 15 analysts in a Bloomberg survey. CEZ cut its 2012 profit target to 40 billion koruna from 41 billion koruna and its plan for earnings before interest, taxes, depreciation and amortization to 85 billion koruna from 87.9 billion koruna, citing losses at its unit in Albania.
“We consider the third-quarter report negative since the results were disappointing and the full-year target was lowered,” Bohumil Trampota, an analyst at J&T Banka AS in Prague, wrote in an e-mail to clients today.
Trampota has a buy rating on the stock, with a price estimate of 894 koruna.
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