JB Hi-Fi shares up following strong earnings
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More news: JB Hi-Fi’s shares have gained more than 5% to $59.56 in early trading on the ASX, following its better-than-expected earnings results.
Jarden analysts said the retailer’s results highlighted “the quality of execution”.
“We would expect consensus to come up mid-high single digit at the EBIT line, following the stronger result and better trading update given comps begin to get easier through the second half earnings,” Jarden said.
“The above said, we think there is a lot in the share price at current levels.”
JB Hi-Fi cuts dividend after drop in half-year profit
The news: Consumer electronics giant JB Hi-Fi has trimmed its shareholder payout after reporting a drop in half-year profit amid challenging retail conditions.
The numbers: Net profit for the six months to 31 December was down 19.9% to $264.30 million but came in ahead of analyst expectations. Total sales for the half year were down 2.2% to $5.16 billion. The company will pay a lower final dividend of $1.55 per share, down from $1.97 a year ago.
The context: JB Hi-Fi CEO Terry Smart had warned in October that sales were trending softer at its Australian electronics stores and down double digits at appliances retailer The Good Guys.
Sales since have picked up at JB Hi-Fi’s Australians stores in January, rising 1.7% on a comparable basis in the month, although it is down 2.2% at The Good Guys and down 4.1% at JB-HI-Fi New Zealand.
What they said: On Monday, Smart said the group had adapted to a challenging retail environment but conditions had become harder.
"As expected, we saw the trading environment become more challenging, marked by heightened competitive activity and increased on-floor discounting,” he said.
The source: ASX announcement
