Seven Group shares up after strong earnings results
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More news: Seven Group Holdings shares rose 6.13% to $38.58 by 11:36am AEDT after posting an upgrade to its full-year guidance and announcing that overall earnings for the half year rose 28% to $764 million.
UBS analysts said Seven Group Holdings reported a “strong result” and said margin improvements at Coates, WesTrac and Boral were the key highlights along with solid operating cash flows and de-leveraging.
Seven Group ups guidance after first-half profit lift
The news: The Stokes family controlled investment conglomerate Seven Group Holdings has upgraded full-year earnings guidance after a solid first-half performance at its industrial services businesses.
The numbers: Statutory net profit for the six months to December 2023 was down 38.1% to $188.9 million, although underlying net profit rose 27% to $433 million. The group will pay a fully franked interim dividend of 23 cents a share, unchanged from a year ago.
The context: Overall earnings for the half year rose 28% to $764 million, largely on the back of the group’s industrial services segment which includes its Westrac Caterpillar dealership, and the Coates and Boral businesses.
Earnings from its energy business were down following Beach Energy’s writedowns against its Cooper basin assets, while media earnings also slid 44% from a year ago after mark-to-market impairments at Seven West Media.
On Wednesday, the company upgraded its full-year earnings forecast to “mid to high-teen EBIT growth in FY24” from a previous estimate of “high single to low teen EBIT growth”.
The source: ASX announcement
