JB does it again with better than expected result and strong guidance
Published 13-FEB-2017 12:53 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Electronics, home entertainment and white goods retailer, JB Hi-Fi (ASX: JBH) has delivered an impressive result for the six months to December 31, 2016 exceeding the expectations of most analysts with an underlying net profit of $125.4 million from sales of $2.6 billion.
Management declared an interim dividend of 72 cents per share (up 14.3% on the previous corresponding period), also ahead of analyst’s expectations, and suggesting Bell Potter’s full-year dividend estimate of $1.17 may be conservative.
The strong performance was driven by robust sales growth of 23.6%. Importantly, like-for-like sales growth in Australia was a strong 8.7%.
Management cited key growth categories as being communications, audio, cameras, computers and home appliances.
JBH remains a store expansion and transition strategy. The company had a total of 302 stores in Australia and New Zealand as at December 31, 2016. In Australia, four new JB Hi-Fi HOME and small appliances were introduced to a further 17 existing JBH stores in the first half.
The group’s entry into the white goods sector has been well managed and will continue to be a growth driver as further stores are converted to HOME stores.
In the second half of fiscal 2017 JBH will benefit from a full six month contribution from The Good Guys acquisition which was completed on November 28, 2016.
JBH chief executive, Richard Murray said, “We a pleased with the group’s results for the half, having successfully completed our acquisition of The Good Guys, and the group is well positioned to build on its solid momentum into the second half”.
This positive sentiment is reflected in the group’s outlook statement which points to an underlying net profit of between $200 million and $206 million (up circa 35% on the previous corresponding period) from sales of nearly $5.6 billion.
This compares with Bell Potter’s pre-result full-year underlying net profit and sales estimates of $194.5 million and $5.5 billion respectively.
It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.