Johns Lyng shares plummet on results miss
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More news: Shares in Johns Lyng have lost nearly a third of their value in early trading on the ASX, with the stock down nearly 33% to $3.74 after the building services provider reported softer-than-expected full-year results.
FY24 revenue tumbled 9.6%, while profit of $48 million was below analyst forecasts of $54 million.
Citi analysts were surprised by the results but have a 'buy' rating on the stock along with a price target of $7.85.
What they said: "We are surprised by weakness in business as usual (BAU) revenue, particularly given it is a miss compared to JLG's guidance," Citi analysts said in a note.
"While JLG is guiding to a higher BAU margin in FY25 vs expectations, we think the market is likely to be disappointed by the extent of BAU revenue growth implied by guidance."
Johns Lyng lifts full-year profit
The news: Building services provider Johns Lyng Group has lifted full-year profit helped by acquisitions and contract extensions.
The numbers: Full-year profit was up 2.5% to $48 million, despite revenue slipping 9.6% to $1.16 billion amid a scale down of the commercial construction business.
Group earnings were up 8.5% to $129.6 million, and the company will pay a final dividend of 4.7 cents a share, up from 4.5 cents a year ago.
The context: The company said its business-as-usual revenue continued to grow, increasing 9.7% to $929.7 million on the back of steady performance of its main insurance building and restoration services division, which contributes about 80% of revenues.
The group expanded operations in the US market during the year, and also completed bolt-on acquisitions in strata services. It said positive momentum had carried into the first quarter of the new fiscal year, and is forecasting for FY25 sales revenue of $1.13 billion and earnings of $123.5 million.
The source: ASX announcement
