VIVO Participacoes

VIVO Participações (VIV - Analyst Report) continues to set new highs as analysts raise full-year estimates for the Brazilian telecom company.

Company Description

VICO is a telecommunication company in Brazil that provides cellular services. The company operates through a number of subsidiaries and it headquartered in Sao Paulo, Brazil.

Profits Jump 73%

On Nov 5 VIVO reported third-quarter results that included over 2,000 more customers, up 16% year-over-year. Overall the company's market share is now just under 30%.

Service revenues increased 4% since last year to R$3.8 billion. Higher revenues translated to a 154% increase in net profits, to R$636 million.

Analysts Raise Estimates

There is not a regular flow of quarterly estimates for the company, but VIVO has received several upward revisions for full-year 2009 and 2010.

Forecasts for this year are up 19 cents over the past 2 months, to $1.14. Next year's Zacks Consensus Estimate is now $2.11, up from $1.59, an 85% growth rate.

Valuation

VIVO is trading at attractive valuations, especially given the popularity of emerging markets. The forward P/E is about 17 times earnings with a PEG ratio of just over 0.5. Its price-to-sales ratio is above 1.3 times.

The Chart

Shares of VIV are in a very nice upward trend and have been consistently setting new 52-week highs. Take a look at the chart below.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

Read the full analyst report on VIV