Qube shares lift on earnings growth, fresh acquisition
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The news: Qube shares edged higher as the logistics group reported a double-digit profit and earnings boost in the 2024 financial year, and announced the $119 million takeover of WA-based Colemans.
The numbers: Shares lifted 0.7% to $3.87 by 12:25pm AEST.
Qube reported a consolidated EBIT of $393 million, up 21% year on year but 2% short of consensus estimates.
Underlying NPATA of $271 million was up 13% on last year and in line with average forecasts.
The group declared a total dividend of 9.15 cents per share, up 13% from FY23, and 17% above consensus expectations.
Qube also announced the acquisition of integrated transport, logistics and storage business Colemans for $119 million, funded by the company's undrawn debt facilities. The company said the takeover includes over $90 million worth of assets, including high security storage sheds in key WA mining centres.
The context: Qube expects its operating division to deliver strong overall underlying earnings growth in FY25, with both the logistics and infrastructure and ports and bulk business units are expected to deliver higher earnings.
The group noted that its acquisition of Colemans is expected to be "modestly" earnings per share accretive.
Jarden analysts said the result was "largely in line with market expectations", driven by a strong contribution from its 50%-owned Patrick Terminals.
They noted that Qube's shift back to qualitative guidance of "growth" at more than 13% in FY25 will "likely cause conjecture" with "higher net interest outlook and a lower Patrick contribution posing key questions".
The sources: ASX announcement, Jarden research, RBC Capital Markets research
