Dallas, Texas 09/16/2013 (Financialstrend) – In Friday’s trading, Gafisa SA (ADR) (NYSE:GFA) stock climbed by 4.93%. The opening price of the shares was $2.86 which rose to an intraday high of $3.00 and dipped to close at $2.98. Approximately 1.92 million shares were traded on Friday while the average volume of shares that were traded over a 30 day period was 1.87 million. The company has a market cap of $647.14 million.
The Q2 report
The company has posted a Q2 loss that was far greater than its projections. As per the security filing that has been posted by the company at that point of time, this was partly due to cancellations in sales at its Tenda unit. It reported a net loss of $6.21M (14.1 million reais) in comparison to the $1million profit that had been reported in the previous year.
Though there was some improvement on the net loss of 55M reas from the 2013 Q1.
At that point, 3 of the 5 analysts who had been surveyed in a Reuter poll had projected an average Q2 loss of 12.6 reais while the other 2 had projected 18M reais of profit. In 2011 October, the company moved through a very speedy expansion into unfamiliar waters. This resulted in sales cancelations, massive cost overturns and huge quarterly losses. Soon after this fiasco, it launched a turnaround strategy. However, its latest quarterly results indicate that it is still fighting those demons especially in the light of older projects nearing their delivery phases.
About the company
The Brazil-based Gafisa SA (ADR) (NYSE:GFA) is involved in real-estate and homebuilding. It is engaged in promoting, administration, sale, purchase and also in trading real-estate properties. The company also provides finance services to various real-estate customers. Apart from this, it is involved in provisioning and construction of civil-engineering services, implementation and development of marketing strategies that are connected to its own or 3rd party projects.