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 trimmed their earnings expectations for 2019 by only 3 percent since the beginning of 2018, with the worst cuts happening during last year’s trucker’s strike. After that dip, projections remained “pretty stable.”