NEW YORK (
TheStreet) -- Among the major Brazil American depositary receipts,
(VIV - Get Report), the two companies to have announced their results, surpassed analysts' estimates.
Second-quarter profits of Banco Bradesco, the second-largest private sector bank, reached 2.46 billion reais ($1.39 billion) from 1.99 billion reais a year earlier. The quarterly profits came above the 2.26 billion reais consensus estimates of analysts polled by
"The decline in bad debt provisions was a big factor helping to boost results," said Chief Financial Officer Domingos Abreu during the conference call Wednesday. The bank maintained its
guidance for credit portfolio growth at 25% for 2010. As noted in
the smart investment guide to Brazil, Brazil banks will benefit from improving credit quality and delinquency rates in both individual and commercial loans.
Banco Bradesco's ADR closed 4.9% higher on Wednesday. In comparison,
Itau Unibanco Banco Holding
(BSBR) were up 2.5% and 0.4%, respectively.
On Wednesday, Vivo Participacoes said earnings per share were 0.591 reais, above the 0.555 reais consensus estimates of analysts polled by
, providing a 6.5% surprise. Additionally, sales of 4,402 million reais were 2.4% above analysts' estimates.
The earnings before interest, taxes, depreciation and amortization margin of the company increased to 30.5% during the quarter, compared with 30.1% a quarter earlier and 30.3% in the prior year. The company's market share reached 30.24%, up from 30.12% during the first quarter of 2010, and 39.33% in the second quarter of 2009.
Vivo closed up 3.5% during Wednesday's trading on the
New York Stock Exchange
. Its main competitor,
(TSU - Get Report)
, was up 1.7% on Wednesday.
(TEF - Get Report)
has reached an agreement to buy with
stake in Vivo for $9.77 billion, according to reports. Telefonica and Portugal Telecom each own a 50% stake in Brasicel, which holds a 60% share in Vivo.
Earnings to Watch
(VALE - Get Report)
is scheduled to announce its earnings Thursday and
is scheduled to announce results on Friday.
Vale is expected to report record earnings for the second quarter on higher iron ore prices,
responsible for nearly 61% of the company's revenue
. Earnings per share could reach the second highest level, after the third quarter of 2008, in the company's history.