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EZ Tec Empreendimentos e Participacoes SA, a Brazilian real estate company that has trailed analysts’ revenue estimates for three quarters, headed to a two-month high after closing its biggest-ever sale.
Shares rallied 3 percent to 27.10 reais at 1:50 p.m. in Sao Paulo. A close at that level would be the highest since Nov. 9. It was the best performance on the BM&FBovespa Real Estate index, which fell 0.4 percent.
EZ Tec sold one of two office towers it is building in Sao Paulo to Sao Carlos Empreendimentos e Participacoes SA for 564 million reais ($276 million), according to a regulatory filing late yesterday. The company said in an e-mailed statement that the transaction was the biggest in its history. The project is scheduled to be complete by the end of next year.
“The sale will boost short-term profitability,” Rene Brandt, an analyst at Banco J. Safra, wrote in a note to clients dated today. Based on the project costs EZ Tec disclosed in its most recent earnings report, the transaction “implies a boost of around 240 million reais on revenues and 126 million reais on gross profit” for the first quarter, Brandt wrote.
Sao Carlos shares rose 3.3 percent to 46.50 reais.
Press officials for EZ Tec and Sao Carlos didn’t immediately respond to phone calls from Bloomberg News seeking comment.
EZ Tec’s adjusted revenue rose 26 percent to 212.6 million reais in the third quarter of 2012 from the same period of 2011, trailing the average estimate of 225.5 million reais of four analysts, data compiled by Bloomberg show. It was the third consecutive time that sales trailed forecast.
EZ Tec gained 63 percent in 2012, while Sao Carlos soared 86 percent and the real estate index rose 22 percent during that same period.
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