Companhia Brasileira de Distribuicao or Grupo Pao de Acucar reported fourth-quarter 2017 results, wherein adjusted net income from continuing operations came in at R$159 million ($48.9 million), down 18.4% from R$195 million ($60 million) recorded in the year-ago period. Results were impacted by soft EBITDA margin that in turn was hurt by food deflation. However, sales grew year on year, driven by continued strength at Assai and the ongoing recovery at Extra Hiper.
While this Zacks Rank #3 (Hold) stock has rallied 14% in a year, it underperformed the industry’s 40.5% surge.
Results in Detail
Net revenue in the fourth quarter came in at R$12,510 million ($3,849 million), compared with R$11,740 million ($3,612.1 million) in fourth-quarter 2016. Net revenues increased 6.6% year over year in local currency.
Adjusted gross profit climbed 2% to R$2,755 million ($847.6 million), whereas the adjusted gross margin contracted 100 basis points (bps) to 22%. Adjusted EBITDA slumped nearly 20% to R$582 million ($179.1 million), while EBITDA margin shrank 150 bps to 4.7%, due to softness in both segments, largely stemming from food deflation.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Companhia Brasileira de Distribuicao or Grupo Pao de Acucar reported fourth-quarter 2017 results, wherein adjusted net income from continuing operations came in at R$159 million ($48.9 million), down 18.4% from R$195 million ($60 million) recorded in the year-ago period. Results were impacted by soft EBITDA margin that in turn was hurt by food deflation. However, sales grew year on year, driven by continued strength at Assai and the ongoing recovery at Extra Hiper.
While this Zacks Rank #3 (Hold) stock has rallied 14% in a year, it underperformed the industry’s 40.5% surge.
Results in Detail
Net revenue in the fourth quarter came in at R$12,510 million ($3,849 million), compared with R$11,740 million ($3,612.1 million) in fourth-quarter 2016. Net revenues increased 6.6% year over year in local currency.
Adjusted gross profit climbed 2% to R$2,755 million ($847.6 million), whereas the adjusted gross margin contracted 100 basis points (bps) to 22%. Adjusted EBITDA slumped nearly 20% to R$582 million ($179.1 million), while EBITDA margin shrank 150 bps to 4.7%, due to softness in both segments, largely stemming from food deflation.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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