Computershare – Earnings Downgrade

Posted on | by Leon Hinde

  Computershare has been on our “high conviction” shortlist for the past few months and today’s 1H20 earnings result helps to support our bearish case.

EPS fell 17% on the same time last year. Lower margin income, weaker corporate actions and pressure in the UK mortgage business all weighed on earnings.

We’re skeptical of the company’s reassurance that 2H earnings will improve.

 

GPT – FY19 Earnings

Posted on | by Leon Hinde

GPT has increased earnings by 2.6% growth, which is in line with the recently lowered guidance.

The FY20 outlook is for similar underlying growth of around 2%.

Office and logistics are clearly the stand-out performers, whilst retail exposure remains a potential drag.

With GPT trading on a 4.5% yield and low levels of growth over the next 1 to 3 years, we consider the stock full value.

 

 

Aurizon 1H20 Earnings

Posted on | by Leon Hinde

Aurizon Holdings reported 1H20 earnings which were mostly in-line with market forecasts.

1H20 EBIT of $456 million with underlying EPS of $0.136cps. The company continues to payout 100% of earnings in dividends.

Full-year 2020 EBIT guidance remains unchanged at $880m – $930m and the share buy-back program has increased to $400m in FY20.

Alacer Gold – Further Detail…

Posted on | by Leon Hinde

Alacer Gold provides an interesting growth opportunity. The company holds a significant portfolio of highly prospective exploration land holdings across Turkey (totaling approximately 125,000 hectares), some of which are progressively advancing to prospective projects.

The release of the CY19 financials show NPAT beat on a one-off tax adjustment, whilst revenue was in line. EBIT of US$171m was also broadly in line with market expectations.

The company has recent exploration success at Çakmaktepe & Ardich sites. We see scope for a material pickup in earnings from FY21.