AUB Group shares dive despite FY earnings beating consensus
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The news: AUB Group was one of the worst performing ASX 200 companies by midday, shedding 6.2% despite beating average forecasts for its full-year earnings.
The numbers: Underlying net profit after tax of $171 million marked a 32.5% rise compared to FY23, and came in 0.3% above consensus estimates.
Revenue increased 20% year on year to $1.34 billion, 1% short of consensus. Earnings before interest and taxes grew 25% to $430 million, in line with average estimates.
AUB declared a total FY24 dividend of 79 cents per share, an increase of 23.4% compared to FY23. The group guided underlying NPAT between $190 million to $200 million in FY25, representing growth of 11.1% to 16.9% over FY24.
Shares were down 6.2% to $32.03 by 11.45am AEST. Jarden analysts had a $33.2 price target while E&P Capital had a $36.03 target.
The context: The insurance broker and underwriting group said it saw "exceptional growth" in its managing agencies division, continued strong performance in Australia and New Zealand, and an expansion to its scale and presence as a retail broker in the UK in FY24.
Jarden analysts described it as a "robust result", noting that while AUB's FY25 guidance came in lower than expected, the group is typically conservative with its initial full-year guidance.
E&P Capital analyst Olivier Coulon said the result was in-line with guidance issued in May and said its should be "well received by the market" with the group still trading at a "substantial discount" to international and domestic broking peers.
The sources: ASX announcement, E&P Capital research, Jarden research
