Weak GDP to hurt Brazilian companies, despite increasing profits

Brazilian companies set to increase profits, but weak GDP may curb expectations

First quarter earnings season is upon us, as investors are keen to find out how Brazilian companies performed amid a sluggish economy which shows no signs of picking up at the desired pace. According to analysts at investment bank BTG Pactual, there’s still decent earnings growth ahead for this year, but further cuts to GDP forecasts may push profit estimates downwards.

Petrobras (oil) and Vale (mining) aside, Brazilian companies’ consolidated earnings will be 25 percent higher than last year, according to bank estimates. Analysts say they...

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