Bapcor soars on first-half earnings beat
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The news: Vehicle parts supplier Bapcor reported a 13% slide in first-half net profit to $40.8 million, citing challenging trading conditions at its New Zealand retail and specialist wholesale divisions.
However, the auto parts provider's shares rocketed in early trading after its underlying profit and interim dividend beat market estimates.
The numbers: Bapcor shares were up 15.2% to $5.17 at 10:35am AEDT.
First-half underlying net profit of $45.5 million edged out consensus forecasts of $45.2 million, while its interim dividend of 8 cents per share, down from 9.5 cents a year ago, topped estimates of 7.7 cents.
The company said it expects to deliver full-year cost savings towards the top end of its $20 million to $30 million target range.
The context: Bapcor said it expects to see savings from first-half cuts to its headcount and distribution centres filter through in the second half of the year.
It noted that it is continuing to simplify the business and strengthen its core operations, while assessing how to optimise its underperforming segments.
The sources: ASX release, Citi research
