By Jeffrey T. Lewis
SÃO PAULO–Cogna Educação’s shares rose 6.1% after the Brazilian school operator’s third-quarter results showed better-than-expected revenue amid improving price trends.
Shares reached 2.78 reais, the equivalent of 57 U.S. cents, and were up 24% from the end of last year through Wednesday’s close. Brazil’s benchmark Ibovespa stocks index was up 0.5% in mid-morning trading.
Cogna reported its net loss dropped by half from a year earlier to BRL102.6 million, and its recurring net loss reached BRL44.1 million after a recurring net loss of BRL147.5 million a year earlier.
The EBITDA figure beat expectations, helped by stronger fixed-cost dilution and lower bad debt expenses, Citi Research analysts Leandro Bastos and Renan Prata said in a research note. In addition to the positive price trend, dropouts improved for both high- and low-attendance students, the analysts said.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
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