Goodman Group shares retreat on profit miss, revenue drop
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More news: Property giant Goodman Group was one of the worst performers on the ASX 200 in morning trade after its first-half profit result fell short of market estimates.
Goodman shares were down 6.9% to $28.92 at 11:10am AEDT. The stock is now down 19.6% over the last 12 months.
Goodman Group posts 3% rise in interim profit, reiterates FY earnings target
The news: Industrial property investor Goodman Group reported a 3.1% lift in first-half statutory net profit to $824.7 million, missing consensus estimates of $1.21 billion, according to Visible Alpha.
The numbers: Revenue tumbled 17.6% year on year to $1.10 billion. Operating profit was 1.5% lower at $1.20 billion.
The company declared an interim distribution of 15 cents per share, flat with last year’s payout and in line with average forecasts.
Goodman also reiterated its full-year target for operating earnings per share growth of 9%.
The context: Chief executive Greg Goodman said the company is building into "strong demand" for metro locations across both logistics and data centres. The group's data centre activity is "significantly increasing" to meet new hyperscale demand, he noted.
What they said: "Large scale logistics customers are targeting productivity and efficiency gains through increased automation and consolidation," said Goodman.
"Data centre customers require facilities with low-latency and high connectivity to meet the unprecedented levels of capex spending forecast across the sector. Goodman is set to benefit from these structural shifts given the quality and location of our sites, and our track record of developing complex infrastructure."
The source: ASX
