Depressed vehicle sales outlook to weigh on ARB Corp's earnings - Brokerage

ARB

06/02/2023 18:51

** Analysts at Morningstar lower full-year profit before tax
(PBT) estimate on Australia's ARB Corp  ARB.AX  after the
release of interim fiscal 2023 earnings
    ** Says margins have contracted earlier than expected; FY
PBT forecast lowered by 14% to A$139 million ($95.48 million)
    ** Brokerage flags main issue with the car-accessories maker
is subdued new vehicle sales on the back of semiconductor
shortages
    ** Morningstar forecasts Aussie new vehicles sales volumes
to remain subdued throughout 2023 before picking up again in
2024
    ** Company said on Monday its prelim 1H 2023 profit before
tax declined nearly 30% within range of A$64 mln to A$64.6 mln
due to elevated inflationary pressures affecting base costs
    ** Brokerage, however, forecasts margins stablising in
fiscal 2024; raises fair value estimates by 4% to A$24.50
    ** Five of eight analysts rate the stock "buy" or higher,
and three "hold"; their median PT is A$32.62 – Refinitiv data
    ** Stock has risen 29.8% this year, as of last close
($1 = 1.4558 Australian dollars)
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))