UK's Cohort FY adjusted EPS beats estimates on export demand
UK's Cohort FY adjusted EPS beats estimates on export demand
Overview
UK defence technology group's FY revenue rose 13% yr/yr, driven by Communications and Intelligence
Adjusted EPS for FY beat analyst expectations; pretax profit missed consensus
Company reported record order book and raised dividend per share by 10%
Outlook
Cohort says order book underpins about £264 mln of 2026/27 revenue, now covering 88%
Company targets double-digit earnings growth in each of 2026/27 and next two years
Cohort expects operating margin to improve to low-teens in 2026/27, aiming for mid-teens by decade end
Result Drivers
COMMUNICATIONS & INTELLIGENCE DIVISION - Strong profit growth driven by a full-year contribution from EM Solutions and nearly 20% growth at MASS
EXPORT DEMAND - Revenue growth supported by increased export activity, especially in NATO Europe, Australia, and Germany, amid higher global defence spending
SENSORS & EFFECTORS DIVISION - Flat revenue and lower profit due to weaker mix at SEA, legacy projects, and Chess Dynamics' performance
Company press release: ID:nRSO3411Ma
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Adjusted EPS | Beat | GBP 0.62 | GBP 0.60 (7 Analysts) |
FY Pretax Profit | Miss | GBP 32.60 mln | GBP 34.51 mln (7 Analysts) |
FY Basic EPS |
| GBP 0.52 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Cohort PLC is GBp1,525.00, about 17.9% above its July 14 closing price of GBp1,294.00
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 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.)