Brokerages cut earnings view for Australia's Endeavour, see margin pressure (updated)

Endeavour

02/11/2025 23:43

Updates

** Jefferies and Citi cut earnings estimates for Australia's Endeavour Group EDV.AX, citing margin pressures across co's hotels and liquor retail businesses

** Jefferies cuts FY26 NPAT by 9%, while Citi cuts its FY26 and FY28 NPAT forecasts by 8% to 7%

 ** Hotel and liquor shop owner reported 4.4% sales growth in first-quarter on October 31

** Jefferies notes first-quarter sales growth in co but warns that sales remain below levels needed to avoid operating deleverage, expecting increased D&A costs in hotels segment, and further margin contraction in retail segment

** Citi also expects compression in retail margins, and adds it sees slower topline growth and inflationa-driven cost pressures in co's hotels segment

** Shares trading flat currently; down 13.1% YTD

 (Reporting by Shruti Agarwal in Bengaluru; Editing by Edmund Klamann)

 ((Shruti.Agarwal@thomsonreuters.com))