Mirvac shares jump 5% as HY earnings beat estimates
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More news: Mirvac shares climbed around 5% in early trading after the property developer beat earnings expectations for the first half of the financial year.
Mirvac shares were trading at $2.10 at 10:45am AEDT.
Earnings of 6 cents per share were ahead of consensus estimates of 5.6 cents. Operating EBIT was in line with forecasts but with lower-than-expected interest and tax expenses.
Jarden analysts said that while residential lot settlements were weaker than expected for the period, sales momentum picked up, paving the way for higher volumes in the second half.
What they said: "We believe the medium-term outlook is attractive and that with MSCI index event soon behind us, the shares should trade on an improving earnings outlook," the analysts said.
Mirvac swings to first-half profit after residential sales uptick
The news: Property developer Mirvac Group swung to a small first-half statutory profit after a strong pick-up in residential sales for the six months to December.
The numbers: Mirvac reported statutory profit of $1 million for the half, turning round a statutory loss of $201 million in the prior corresponding period.
However, operating profit after tax fell 6.3% year on year to $236 million. Earnings before interest and tax dropped from $16 million to $14 million due to lower asset valuations.
The company declared a half-year distribution of 4.5 cents per share, flat compared to a year earlier.
The context: Mirvac said the result was driven by an improvement in residential sales, which lifted 51% compared to the same period last year.
The group reaffirmed its earnings and distribution guidance for the full year.
What they said: "Our results today signal the beginning of a market turnaround, and we are starting to see real benefits from the execution of our strategy," said Mirvac's CEO and managing director Campbell Hanan.
"There is strong momentum as we move into the second half, with higher sales volumes and increased leads, driven by our middle-ring projects including Highforest, Riverlands and Harbourside," he said.
The source: ASX announcement
