Steadfast shares lift on improved guidance
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The news: Shares in Steadfast Group are trading higher on the ASX after the insurance broker lifted its full-year earnings and profit guidance.
The numbers: The company said underlying earnings for FY24 are now likely to be in the $525 million to $530 million range, up from its previous estimate of $520 million to $530 million.
Underlying net profit is now expected to be between $248 million and $253 million, up from $240 million to $250 million.
Shares in the company were up 1.6% to $1.85 in early trading.
The context: The company attributed the improved guidance to strong trading performance until 31 May across its insurance and underwriting network, as well as accretive acquisitions.
As a result, it now expects to deliver FY24 results either at the top end of or slightly exceeding the guidance outlined in February. The group, whose acquisitions over the last two years include Sure Insurance, ISU Group, and Insurance Brands Australia, reported underlying earnings of $229 million for the first half.
What they said: E&P analysts said Steadfast had been a relatively weak performer over the last 12 months "as the market appears to be becoming more concerned about the end of the premium rate cycle".
"We think this upgrade (albeit modest) and Steadfast's upcoming investor days should provide some comfort to investors and be supportive of returns," they said.
The source: ASX announcement
