PREVIEW OF OPERATIONAL RESULTS - GAFISA GROUP 3Q12
--- Gafisa Group unit deliveries increased 9% y-o-y to 17,729 in the 9M ---
--- 9M12 unit deliveries reached 74% of mid-range guidance for the full year ---
--- Preliminary consolidated free cash generation was positive at around R$95 million in 3Q12 ---
--- Operational consolidated cash flow reached approximately R$560 million in 9M ---
--- 93% of the mid-range guidance of R$500 – R$700 million for the full year ---
--- Launches reached R$451.9 million, with sales of R$689.4 million in the 3Q---
--- Consolidated sales velocity improved sequentially to 19%, or 23% ex-Tenda ---
See company web site for details. Press already reporting all this as bad news. I see it as good news.
Improved sales velocity is definitely good. Deliveries might be running a bit slow, but that's something the company has more control over. The 9M cash flow figure is very encouranging. The quarterly cash flow number is a lot lower than previous quarters, but the company obviously anticipated this in their guidance. I believe 4Q and 1Q are generally the strongest in Brazil.