Economy

Assessing Brazilian companies’ earning reports

It could have been a whole lot better. That’s the general sentiment left on Brazilian investors and analysts after the first earnings season of the year, in what was meant to be the kickstart of a crucial year for the country’s economic recovery. As GDP growth projections for the year continue to be scaled down, macroeconomic reforms become even more crucial to boost confidence and unlock Brazil’s economic potential.

A study by consultancy Economatica, surveying 304 Brazilian listed companies, revealed that their profits grew by 9.14 percent on a yearly basis, to a combined BRL 42 billion in Q1 2019. However, when you take banks out of the equation, profits actually dropped by 2.55 percent, at “only” BRL 20.5 billion. Both estimates exclude the earnings of Petrobras, Vale and Oi, due to large distortions in their numbers.



According to Carlos Sequeira, the head of Equity Research at BTG Pactual bank, “a...

Natália Scalzaretto

Natália Scalzaretto has worked for companies such as Santander Brasil and Reuters, where she covered news ranging from commodities to technology. Before joining The Brazilian Report, she worked as an editor for Trading News, the information division from the TradersClub investor community.

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