Feb. 2 (Bloomberg) -- Redecard SA, Brazil’s second-largest card-payment processor by market value, rose to the highest level in almost two years after the company said cost cuts helped boost its adjusted net income 31 percent last quarter.
Shares gained 3.1 percent to 32.37 reais at 11:50 a.m. in Sao Paulo, the highest since April 2010. Cielo SA, Redecard’s bigger rival, rose 2.5 percent.
Redecard’s adjusted net income, which excludes some items, increased to 456.9 million reais ($263.7 million), from 348.7 million reais a year earlier, according to a regulatory filing. The results beat the 402 million reais mean estimate in a Bloomberg survey of 11 analysts.
“The company’s results were stronger than expected on costs and expenses,” analysts Carlos Firetti, Gustavo Lobo and Bruno Chemmer from Banco Bradesco BBI wrote in a note to clients yesterday. They rate the stock “outperform.”
--With assistance from Francisco Marcelino in Sao Paulo. Editors: David Papadopoulos, Glenn J. Kalinoski
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