Braskem SA (BAK) shares are soaring 5.08% in Friday's pre-market trading, despite reporting a quarterly loss, as the company's revenue surpassed analyst expectations. The Brazilian petrochemical company posted a loss of 14 cents per share for the quarter ended June 30, which was an improvement from the 68 cents per share loss reported in the same quarter last year.
While the bottom line missed the mean expectation of two analysts who forecasted earnings of 62 cents per share, Braskem's revenue performance caught investors' attention. The company reported revenue of $3.33 billion, slightly above the analysts' expectations of $3.28 billion, despite a 9.1% year-over-year decline.
The market's positive reaction may also be attributed to improving analyst sentiment. The mean earnings estimate for Braskem has risen by an impressive 287.9% over the last three months, with no negative revisions in the past 30 days. Additionally, Wall Street's median 12-month price target for Braskem SA stands at $4.80, representing a potential upside of 36.7% from its last closing price. This optimistic outlook, coupled with the "buy" consensus recommendation for the commodity chemicals peer group, appears to be driving investor confidence despite the reported quarterly loss.
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