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Feb. 17 (Bloomberg) -- Cia Brasileira de Distribuicao Grupo Pao de Acucar rose to the highest level in eight months after reporting fourth-quarter profit that beat forecasts.
Shares gained 2.7 percent to 77 reais at 12:14 p.m in Sao Paulo, the highest intraday price since June 29. The benchmark Bovespa index fell 0.2 percent.
Pao de Acucar, Brazil’s biggest retailer, said net income rose 43 percent to 361 million reais ($210 million) in the quarter, beating the average estimate of 319.8 million reais among six analysts surveyed by Bloomberg. Consolidated sales jumped 21 percent.
The results reflected “another excellent quarter,” Banco Bradesco BBI SA analysts Ricardo Boiati, Alan Cardoso and Pedro Bueno wrote in a report sent to clients today. They have an “outperform” rating for the stock.
Margins on earnings before interest, taxes, depreciation and amortization increased to 8.2 percent in the quarter, from 6.6 percent in the same period last year, the company said in a regulatory filing yesterday. Consolidated net revenue rose to 13.4 billion reais, while sales in the retailer’s food operations were up 10 percent.
--Editors: Brendan Walsh, Richard Richtmyer
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