UK's Berkeley Group slightly misses FY pretax profit estimates hurt by geopolitical uncertainity

Berkeley group

Today 07:18

Overview
UK homebuilder's FY pretax profit slightly missed analyst expectations, down 15% yr/yr
Basic EPS fell 11% yr/yr as market conditions remained challenging
Company returned £233 mln to shareholders via buy-backs as net cash rose to £363 mln

Outlook
Berkeley targets £1.4 bln pre-tax profit over FY27 to FY30
Company aims for 15% core return on capital as soon as possible
Berkeley plans £640 mln in shareholder returns by September 2030, with £112 mln completed

Result Drivers
SUBDUED MARKET - Co said transaction levels and forward sales were hit by market caution, ongoing tax and regulatory uncertainty, and lack of urgency among buyers
COST CONTROL - Operating costs were 6% lower yr/yr, with the co citing disciplined management and efficiency measures in an inflationary environment
LIMITED NEW LAND INVESTMENT - Co restricted new land purchases, focusing instead on optimizing existing holdings due to increased tax and regulatory burden

Company press release: ID:nRSX4626Ja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Pretax Profit
Slight Miss*
GBP 451.40 mln
GBP 452.79 mln (17 Analysts)
FY Basic EPS
 
GBP 3.32 
 
FY Net Asset Value Per Share
 
GBP 39.17
 
FY ROE
 
12.50%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy."
Wall Street's median 12-month price target for Berkeley Group Holdings PLC is GBp3,700.00, about 7.4% above its June 23 closing price of GBp3,446.00
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)