Pexa shares up on steady earnings guidance
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More news: Shares in PEXA were up 1.7% to $13.91 after the online property settlements company reaffirmed full year operating earnings guidance despite a weaker economic environment in its key markets of Australia and the UK.
PEXA reported mixed volumes for the March quarter and said it remains cautious about the impact of interest rate movements on the real estate market.
Pexa reaffirms guidance but cautious on rate impact
The news: Online property settlements company PEXA says it remains cautious about the impact of interest rate movements on the real estate market after a mixed result in the March quarter.
The numbers: PEXA reported total transaction volumes of 837,000, 0.7% lower from a year ago, while transfer volumes were up 9% to 537,000.
Refinance volumes also dropped 22% from a year ago, representing 21% of total volumes in the current quarter compared to 28% in the same period last year.
The context: PEXA reaffirmed that full-year operating earnings are likely to come in between $109 million and $115 million but said the economic environment for its key markets of Australia and the UK remained mixed.
The Australian group entered the UK last year as its first overseas expansion, and has been looking to build scale in the fragmented conveyancing market. It acquired Smoove in October to deepen its presence in the UK conveyancing market.
What they said: "In Australia, we remain cautious about the impact of interest rate movements and the flow on effect this may have on property settlement and refinancing activity levels,” Pexa said in a statement.
"In the UK, market conditions remain subdued with some small, but promising, signs of recovery with remortgage activity recently touching cyclical lows."
The source: ASX announcement
