JB Hi-Fi shares climb as HY profit, sales top estimates
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More news: JB Hi-Fi shares rallied in morning trade despite the company's first-half result drawing mixed reactions from analysts.
Shares were up 7.5% to $82.43 at 12:20pm AEDT. The stock is down 18.7% over the last 12 months.
Jarden analyst Ben Gilbert called it "another quality result" with the company "executing well, balance sheet in good shape and structural support via AI take up, replacement cycle and housing strength (not withstanding rising rates)".
"While some likely modest negative consensus revisions may weight on stock price, we see this result as better than feared, with a number of sector-specific tailwinds to provide support from here," Gilbert said.
However, RBC Capital Markets analyst Michael Toner pointed to softer-than-expected January trading and noting cautious commentary from CEO Nick Wells.
JB Hi-Fi notches 7% jump in first-half profit, sales; lifts dividend 24%
The news: Consumer electronics giant JB Hi-Fi reported a 7.1% increase in first-half net profit to $305.8 million, edging out average forecasts of $304.4 million, according to Visible Alpha data.
The numbers: Revenue was up 7.3% to $6.09 billion, above analysts' estimates of $6.03 billion.
The company declared an interim dividend of $2.10 per share, up from $1.70 a year prior and above consensus estimates of $2.08.
The context: JB Hi-Fi chief executive Nick Wells said the group's brands "continue to resonate strongly" in a retail environment "where customers are seeking value".
The group said improved sales in Australia were driven by continued customer demand for technology and consumer electronics products, combined with "strong promotional execution".
The key growth categories were mobile phones, small appliances, games hardware, computers and fitness.
What they said: "Whilst we are pleased to see sales growth continue in January in JB Hi-Fi and The Good Guys, cycling strong sales in the prior year, we remain cautious given the uncertainty in the retail market and the continued competitive activity," said Wells.
The source: ASX
