UK's discoverIE Group full-year revenue rises 5%, margin slips
UK's discoverIE Group full-year revenue rises 5%, margin slips
Overview
UK customised electronics maker's preliminary full-year revenue grew 5% yr/yr
Adjusted EPS for the year rose 4% yr/yr
Adjusted operating margin dipped due to increased investment in sales and engineering
Outlook
Company expects full-year adjusted earnings in line with board expectations
discoverIE sees strong order growth and sales momentum continuing into the new year
Company remains on track for medium-term 17% operating margin target
Result Drivers
RETURN TO ORGANIC GROWTH - Co said sales growth resumed as customer inventories normalized and order patterns returned to normal
INVESTMENT IN CAPACITY - Increased investment in engineering, sales, and manufacturing capacity in the US, Europe, and Asia weighed on margins
Company press release: ID:nRSC7340Ga
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| GBP 443.30 mln |
|
FY Adjusted EPS |
| GBP 0.40 |
|
FY EPS |
| GBP 0.29 |
|
FY Adjusted Operating Margin |
| 13.80% |
|
FY Adjusted Operating Profit |
| GBP 61 mln |
|
FY Pretax Profit |
| GBP 36.10 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for discoverIE Group plc is GBp890.00, about 14.4% above its June 2 closing price of GBp778.00
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 15 three months ago
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(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.)