Back to top

Analyst Blog

Brazilian electric utility, Companhia Energetica de Minas Gerais (CIG - Analyst Report) is slated to release its third quarter 2012 results on Wednesday, November 14. The current Zacks Consensus Estimate for earnings per share (EPS) is US$1.54 per ADR, roughly flat over the year-ago quarter.

Second Quarter Recap

Companhia Energetica de Minas Gerais reported quite an impressive second quarter 2012 financial results on August 14. Net income in the quarter was R$604.2 million (US$308.3 million), up 15% year over year. Earnings per ADR came in at US$0.42 per ADR.

Net revenue increased 16% to R$4,413.9 million (US$2,251.9 million), despite a 0.17% dip in electricity sold to 16,907 GWh at the end of the quarter.

For further details follow the link: Net Income Rises at CEMIG

Agreement/Magnitude of Estimate Revisions

In the last 30 days, an upward revision in one of the total three estimates pushed the Zacks Consensus Estimate up by 0.4% to US$2.57 per ADR for year 2012 while there was an increase in estimate for year 2013 by 11.5% to US$1.46 per ADR.

Our Take    

Results in the third quarter 2012 are expected to improve on a sequential as well as on a year-over-year basis. Demand for electricity seems to be on the rise as Brazil prepares to host two major sporting events in the coming years. Also, the Government seems keen to invest heavily in infrastructure and power generation capabilities.

Cemig, the fifth largest electricity generator in Brazil, generates approximately 97% of electricity from hydroelectric sources. The company competes with Companhia Paranaense de Energia (ELP - Analyst Report), which is expected to release its third quarter financial results on November 13. The Zacks Consensus Estimate for the quarter stands at US$0.48 per ADR.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 2.99 +2.75%
CHIPOTLE ME… CMG 689.85 +1.69%
CHINA BIOLO… CBPO 46.80 +1.60%
STRATTEC SE… STRT 71.90 +1.41%
ILLUMINA IN… ILMN 174.40 +0.83%