Best calls to action – Tuesday, 15 February
About the author:
- Author name:
- By Andrew Tang
- Job title:
- Analyst - Equity Strategy
- Date posted:
- 15 February 2022, 6:00 AM
- Sectors Covered:
- Equity Strategy and Quant
JB Hi-Fi Limited: Electric Dreams: A resilient 1H22 result, augmented by a $250m buyback
JBH pre-announced its headline 1H22 earnings last month. The full earnings release issued today confirmed that EBIT was down 9% to $420.5m, but this was 60% above 1H20 and 17% above our estimate before the January trading update.
Gross margins and operating cash flow were better than we had forecast. A $250m off-market buyback was announced. We have increased our EPS estimates by 1.7% in FY22F and 5.1% in FY23F, taking account of higher forecast sales and a lower forecast share count. We reiterate our ADD rating.
Read our full reports and latest price targets on ASX:JBH here.
Aurizon Holdings Ltd: Continued focus on Bulk's growth
We view the 1H22 result as solid, with the key interest being the deployment of capital into Bulk, rebound in Coal's unit metrics, and the dividend reduction to support the funding of the One Rail acquisition due to complete in coming months.
The story remains one of Coal and Network facing long-term sustainability issues, but in the meantime generating strong cashflow to support returns to investors and a pivot into Bulk. ADD retained.
Read our full reports and latest price targets on ASX:AZJ here.
Beach Energy Limited: Strong rally closing the gap with peers
BPT's 1H financial result was in-line with expectations given the production and revenue numbers were released at the quarterly in late January. Operating cashflow was significantly higher than we'd forecast (+$124m, +26%) with a catch up payment and favourable working capital movements.
We think there's a chance of weaker customer demand for gas on the East Coast this calendar year and downgrade our sales forecast. Despite today's strong rally and the potential for a softer 2H we maintain our ADD.
Read our full reports and latest price targets on ASX:BPT here.
Find out more
You can find further detailed analysis of company results this reporting season by browsing our reporting season tag, and view a full list of upcoming results on our Reporting Season Calendar.
If you would like access or more information, please contact your adviser or nearest Morgans office.
Request a call
Find local branch
Need access to our research?
You are also welcome to start a two-week trial of our online platform, which provides access to detailed market analysis and insights, provided by our award-winning research team.
Create trial account
Disclaimer: Analyst may own shares. The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.