Australia's Collins Foods falls on earnings forecast cut, cost-of-living woes

Collins Foods

26/06/2024 01:50

(Adds share moves, Macquarie comments)
    ** Shares of Collins Foods  CKF.AX  fall as much as 3.4% to
A$9.660
    ** Co had flagged cost-of-living pressures and weak consumer
sentiment in its main market, Australia, while posting solid
FY24 results on Tuesday
    ** Macquarie lowers earnings forecasts for FY25-27 by
between 2.3% and 7.3% following Collins' FY24 results
        ** Cuts target price for co by 14% to A$10.80
        ** Margins to remain under pressure in FY25, but we see
medium-term growth opportunity through M&A and easing cost
pressures - Macquarie
        ** Analysts at Morningstar expect Collins Foods' margins
will improve in the longer term as cost-of-living pressure
abates and menu prices catch up
        ** Brokerage says co's underlying EPS of A$0.51 for
FY2024 missed estimates of A$0.55 
    ** Stock has fallen 15.5% YTD, as of last close
    

 (Reporting by Shivangi Lahiri and Poonam Behura in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))