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Navigating Ambipar’S Impressive Market Performance
(MENAFN- The Rio Times) In just over two months, Brazil's Ambipar's stock has skyrocketed by 1109%, escalating from R$8.05 to R$97.35.
This spike followed the company's financial results announced last Thursday. Currently, the stock boasts a year-to-date gain of 499%, ranking it among the highest in the Brazilian stock market.
For the second quarter of 2024, Ambipar reported a net profit of R$45.5 million ($8.3 million), marking a 90.4% increase from the previous year.
Ambipar is a prominent environmental management company in Brazil active in waste management and emergency response.
The firm also achieved record EBITDA of R$436.4 million ($79.3 million), up by 18%.
Additionally, its revenue reached a new peak at R$1.4 billion ($254.5 million), growing 17.5% from the prior year.
XP's research highlighted that Ambipar's operational results exceeded expectations. Adjusting for one-off financial costs, the adjusted net profit outperformed projections.
The company's net debt slightly rose to R$4.9 million ($0.89 million) from R$4.6 million ($0.84 million) as of March 2024.
Ambipar announced a low leverage ratio of 0.28, with future projections set at 2.5 by year's end.
Navigating Ambipar's Impressive Market Performance
They expect further reductions from ongoing lease negotiations and asset sales. Itaú BBA acknowledged the positive results, particularly the EBITDA surpassing estimates.
They also noted the unexpected net losses due to higher fees and penalties for some debt prepayments.
The substantial rise in stock prices aligned with the announcement of new debt projections early in the month.
However, Ambipar disclosed to the CVM that it had no knowledge of any specific events that could explain the sudden rise.
This scenario likely involves "short covering," where investors quickly close their short positions, driving the stock prices higher.
Founder Tércio Borlenghi Júnior increased his stake amid high short interest, which has continued to fuel the stock's ascent, attracting more investors to close their short positions.
This spike followed the company's financial results announced last Thursday. Currently, the stock boasts a year-to-date gain of 499%, ranking it among the highest in the Brazilian stock market.
For the second quarter of 2024, Ambipar reported a net profit of R$45.5 million ($8.3 million), marking a 90.4% increase from the previous year.
Ambipar is a prominent environmental management company in Brazil active in waste management and emergency response.
The firm also achieved record EBITDA of R$436.4 million ($79.3 million), up by 18%.
Additionally, its revenue reached a new peak at R$1.4 billion ($254.5 million), growing 17.5% from the prior year.
XP's research highlighted that Ambipar's operational results exceeded expectations. Adjusting for one-off financial costs, the adjusted net profit outperformed projections.
The company's net debt slightly rose to R$4.9 million ($0.89 million) from R$4.6 million ($0.84 million) as of March 2024.
Ambipar announced a low leverage ratio of 0.28, with future projections set at 2.5 by year's end.
Navigating Ambipar's Impressive Market Performance
They expect further reductions from ongoing lease negotiations and asset sales. Itaú BBA acknowledged the positive results, particularly the EBITDA surpassing estimates.
They also noted the unexpected net losses due to higher fees and penalties for some debt prepayments.
The substantial rise in stock prices aligned with the announcement of new debt projections early in the month.
However, Ambipar disclosed to the CVM that it had no knowledge of any specific events that could explain the sudden rise.
This scenario likely involves "short covering," where investors quickly close their short positions, driving the stock prices higher.
Founder Tércio Borlenghi Júnior increased his stake amid high short interest, which has continued to fuel the stock's ascent, attracting more investors to close their short positions.
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