Bloomberg News

Cyrela Plunges as Sales Trail Some Estimates: Sao Paulo Mover

January 22, 2013

Cyrela Brazil Realty SA, Brazil’s biggest homebuilder by revenue, dropped the most in six weeks after reporting preliminary 2012 sales that trailed some analysts’ estimates.

Shares fell 2.7 percent to 18 reais at the close of trading in Sao Paulo, the steepest decline since Dec. 11. The BM&F Bovespa Real Estate Index (IMOBBV) declined 0.8 percent.

Cyrela said in a regulatory filing yesterday that sales including partners fell 7.6 percent to 6 billion reais ($2.9 billion). Analysts at Banco Bradesco SA (BBDC4)’s brokerage had projected 6.4 billion reais.

“On the whole, Cyrela’s results were no different than its peers’, in our view,” Banco Bradesco analysts including Luiz Mauricio Garcia wrote in a note to clients published today. “It is reasonable to anticipate some underperformance, as the market was expecting more.”

Sao Paulo-based Cyrela’s fourth-quarter sales were 1.08 billion reais, while sales including partners were 1.7 billion reais, according to the filing. Sales in the year-ago period were 1.98 billion reais, data compiled by Bloomberg show.

EZ Tec Empreendimentos & Participacoes SA, the country’s fourth-biggest homebuilder by market value, dropped 3.1 percent to 26.50 reais, the biggest decline since Sept. 14. The company’s fourth-quarter sales fell 16 percent year over year, totaling 210.3 million reais, according to a regulatory filing yesterday.

To contact the reporter on this story: Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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