Little Love for Brazil’s PC Leader

Photograph by Yasuyoshi Chiba/AFP via Getty Images

Positivo Informatica tumbled the most in a month after reporting a third-quarter profit that missed estimates.

Unless you’re living in Brazil, odds are you haven’t heard of Positivo Informatica. It’s the country’s biggest computer maker, an honor that seems less impressive every day.

Profit margins throughout the PC industry are declining, as is industry growth as a whole. Positivo appeared to buck that trend earlier in the year when it beat analysts’ estimates. Earnings in March “showed that Positivo has managed to drive margins to a more sustainable level,” analysts at Bradesco Corretora wrote in a note then.

Today, the company’s shares tumbled after reporting third-quarter earnings that missed estimates, Denyse Godoy reported for Bloomberg News. So much for profit optimism.

Investors’ other hope was for a buyout. Positivo’s prospects dimmed in September when Lenovo, the world’s largest PC maker, acquired a rival consumer-electronics group in Brazil called CCE for 300 million reais ($147 million). That sent Positivo’s stock into its biggest tailspin in three years.

With fewer suitors coming around in this slow-growth market, investor sentiment toward this company is looking negativo.

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