According to Gabriel Tinem, analyst at Great Investments, a Vivo (VIVT3) registered “strong” results in the 3rd quarter. Daniel Federle, da Swiss credit, classified the company’s disclosure as “slightly positive”.
The telecommunications company had net income of R$ 1.315 billion in the period, up 8.5% compared to the same stage in 2020 and 11.7% ahead of Genial’s estimates.
According to Tinem, the result was in line with expectations, representing “performances solid results with an encouraging surprise on the profit side.” Genial recommended the purchase of VIVT3, with a target price of R$ 60.
The indication of Credit Suisse and the Harvest outperform forms — that is, expected performance above the market average — with target price of, respectively, R$ 61 e R$58.
Luis Azevedo, Silvio Dória and Gabriel Pucci, from Safra, stated that they still see “Vivo as a defensive game” and that the company’s predictable gains, track record and strong cash flow generation
“must maintain considerable dividends and good income”.
Not only analysts have a positive view of the results, but also the market. In reaction to the disclosure, the company’s paper registered a slight increase of 1.65% at 4 pm this Thursday (28), being quoted at R$ 45.32.
Highlights
Brokers pointed out some key reasons for Vivo’s results, among which the following stand out:
- Total net revenue, which reaches BRL 11.03 billion, and net income higher than expected of BRL 1.31 billion (+ 8.5% per year), explained mainly by “better control of operating costs ”, according to Genial;
- EBITDA “according to consensus”, for Credit Suisse, reaching R$4.41 billion — an increase of 2.1% per year, guaranteeing a margin of 40.0% — and “showing improvements in operational efficiency every quarter ”, according to Genial;
- Expansion of the number of FTTH customers, generating revenue of R$ 1.18 b (+37.2% pa).
For Genial, despite the positive results, the scarcity of chips — scarred by lack of silicon — negatively affected handset revenue of Vivo, with a decrease of -19,8% pa
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