Autosports Group rises most in 5-1/2 months as HY results beat estimates

Autosports

22/02/2023 03:59

(Updates with Citi comments)
    ** Shares of Autosports Group Ltd  ASG.AX  jump 7.1% to
A$2.26, hitting their highest since Sept 6 
    ** Automotive dealer says HY profit after tax attributable
rose 71.8% to A$34.2 mln ($23.46 mln), declares interim dividend
of 9 AU cents per share
    ** Co logs 16.6% rise in HY revenue to A$1.06 bln, beating a
consensus estimate of A$1.02 bln 
    ** Analysts at Citi say co's first-half revenue was 6% ahead
of its estimates and 7% above Visible Alpha consensus with all
revenue segments driving the beat
        ** Citi adds that positive interim results should see
consensus revenue expectations rise on the back of increased
investments in services and parts division to begin in second
half
  
        ** Brokerage also estimates consensus margin forecasts
to elevate due to higher back end contribution and new vehicle
margins
  
    ** Co adds it expects to continue growth momentum into
second half and its new vehicle supply is expected to continue
its gradual improvement through the second half of FY2023
    ** UBS analysts say results a strong operating beat, driven
by new vehicle revenue; set "buy" rating and price target of
A$3.10  
    ** ASG stock had risen ~3.9% this year, as of last close
($1 = 1.4575 Australian dollars)
 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))