SGH shares jump on better-than-expected earnings
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More news: Shares in SGH have jumped more than 5% to $51.18 after the Stokes family-controlled investment conglomerate reported better-than-expected first-half earnings.
Overall earnings for the half year rose 8% to $1.02 billion, largely on the back of the group’s industrial services segment.
UBS analysts, who have a 'buy' rating on the stock, said Boral's focus on cost optimisation and price discipline delivered a strong margin performance and an "EBIT result +20% ahead of consensus".
What they said: "Strong operating result ... Company targeting 2x leverage by year end to position for future growth opportunities a positive, in our view," UBS said in a note.
SGH reaffirms FY earnings growth after solid first half
The news: The Stokes family controlled investment conglomerate SGH, formerly named Seven Group Holdings, has reaffirmed 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 more than doubled to $518.6 million due to lower impairments from a year ago, while underlying net profit was up 7% to $508 million. The group will pay an interim dividend of 30 cents a share, up from 23 cents a year ago.
The context: Overall earnings for the half year rose 8% to $1.02 billion, 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 was up following Beach Energy’s growth in production, while media earnings were down 6% from a year ago after lower advertising revenue at Seven West Media.
The company said it expects “high single digit EBIT growth” in FY25.
The source: ASX announcement
