Desarrolladora Homex SAB (HOMEX*), Mexico’s largest homebuilder, fell the most in five months after sales missed analysts’ forecasts and the company cut its 2012 revenue projections. The builder’s bonds tumbled.
Homex shares tumbled 8.7 percent to 28.09 pesos at 11:06 a.m. in Mexico City, after earlier declining as much as 12 percent, the biggest intraday retreat since Feb. 28. Yields on Homex’s dollar bonds due in 2019 rose 39 basis points, or 0.39 percentage point, to 8.88 percent, according to data compiled by Bloomberg.
Revenue of 7.2 billion pesos ($527.3 million) fell short of the 8.4 billion peso median estimate of seven analysts surveyed by Bloomberg as volume declined in its core homebuilding business. Second-quarter home sales fell 11 percent to 11,154 units, Homex said yesterday in a filing.
“The contraction in Homex’s sales speed at the housing segment is related to a greater extent to the company’s product offering,” Rogelio Urrutia, a Mexico City-based analyst with Banco Santander SA (SAN), wrote in an e-mailed note.
Homex cut its projections for full-year sales and profit margins. The company said Housing division revenue will rise 3 percent to 4 percent this year, down from a previous forecast of 10 percent to 12 percent growth. The outlook for margin on Ebitda, a measure of earnings before interest, taxes, depreciation and amortization, was reduced 1 percentage point to a range of 20 percent to 21 percent.
Penitentiary projects awarded to Homex from the federal government have bolstered the company’s results amid the slide in the core homebuilding business.
Homex agreed to buy the minority stake held by its only partner in one of its two prison projects, Chief Financial Officer Carlos Moctezuma said today in a conference call with analysts. It will pay the former partner 1.1 billion pesos for the stake, a payment that will amortize over the 30 months after the delivery of the project, Moctezuma said.
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