Australia's Aurizon hits 16-mth low on gloomy FY forecast, profit miss

Aurizon Holdings

12/08/2024 05:49

By Rajasik  Mukherjee
       Aug 12 (Reuters) - 
    Aurizon  AZJ.AX , Australia's biggest rail freight operator,
fell to its lowest level in more than 16 months on Monday after
it forecast 2025 earnings that underwhelmed investors and missed
profit expectations.
    The stock shed as much as 8%, heading for its worst session
since Feb. 13, 2023. 
    The firm expects fiscal 2025 earnings before interest,
taxes, depreciation, and amortization (EBITDA) to be between
A$1.66 billion and A$1.74 billion ($1.09 billion-$1.14 billion),
3% below the midpoint of market expectations, with Citi calling
the projection "underwhelming". 
    Meanwhile, Aurizon reported FY24 underlying EBITDA of A$1.62
billion, missing Visible Alpha estimates by 1%.
    "Overall a soft FY24 result, with a ~4% miss at the group
EBIT line. Additionally Bulk/Containerised Freight investments
will continue to be topical given lower than expected returns,"
Citi said in a note. 
    Aurizon additionally said that it was buying back A$150
million worth of shares and declared a final dividend of 7.3
Australian cents. 
    The company's stock has fallen 4.7% so far this year. 
    

($1 = 1.5198 Australian dollars)

 (Reporting by Rajasik  Mukherjee in Bengaluru; Editing by Sonia
Cheema)
 ((Rajasik.Mukherjee@thomsonreuters.com;))