Brokerages see Harvey Norman's earnings to skew further on rising interest rates

Harvey Norman Holdings

28/06/2023 21:47

** Morningstar analysts say trading update from Australia's
retailer Harvey Norman  HVN.AX  showed that earnings worsening
faster than expected
    ** HVN on Wednesday said it expects FY23 profit before tax,
excluding AASB16 leases and net property revaluations, at A$670
mln ($445.01 mln) +/- 5%, vs A$942.8 mln profit reported last
year
    ** Jefferies also expects HVN's FY24 profit before tax to
reach back to pre-COVID level, declining by a further 26%
    ** Morningstar slashes co's FY23 underlying pretax profit
forecast by 10% to A$676 mln; lowers FY24 forecast by 6% to
A$655 mln
    ** Normalisation of spending behaviour, combined with the
effects of rising interest rates and the resultant strain on
household income, is beginning to weigh on the co - Morningstar
    ** Two of 13 analysts rate the stock "buy" , six "hold" and
five "sell"; their median PT is A$3.60 – Refinitiv 
    ** YTD, stock has fallen 17.4% as of last close

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))