Steadfast shares dip as earnings miss expectations
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The news: Shares in Steadfast dipped more than 5%, after the insurance broker network posted its half-year results on Tuesday evening.
The numbers: Steadfast reported statutory net profit after tax of $100.4 million for the six months to December 2023, up from $84.7 million in the prior corresponding period. Underlying EBITA grew 21% to $229 million as revenue jumped 20% to $653.1 million.
The company declared an interim dividend of 6.75 cents per share, up from 6 cents per share a year earlier.
Shares were down 5.4% to $5.61 by 11:50am AEDT.
The context: Steadfast said the profit gains were due to price and volume increases by insurers, acquisitions including Sure Insurance and ISU Group, and the added contributions of businesses acquired in FY23 such as Insurance Brands Australia.
However, Jarden analysts said Steadfast's results fell short of estimates despite retaining its full-year profit guidance. They noted that NPATA of $130 million was 2% to 3% below consensus, while EBITA of $229 million was 3% to 4% short.
The source: ASX announcement
