Morningstar expects softer hardware earnings for Australia's Metcash
BUZZ-Morningstar expects softer hardware earnings for Australia's Metcash ** Analysts at Morningstar expect slightly weaker hardware earnings for Metcash MTS.AX as soft demand from trade customers weigh on margins
** Wholesale distribution firm Metcash on Monday posted a 4.2% drop in FY net profit attributable to A$279.1 mln ($192.22 mln)
** Firm suspended dividend reinvesment plan until further notice
** FY26 EBIT for hardware segment dropped to A$177.3 mln from A$189.3 mln in FY25, "reflecting softer trade conditions for its Hardware retail stores in Victoria and Tasmania," co said
** We believe market is more concerned than us about weak construction activity and timing and extent of recovery in margins - Morningstar
** Investment research firm lifts corporate costs for Metcash in line with co's guidance
** Stock down 7.9% YTD, as of last close
($1 = 1.4520 Australian dollars)
(Reporting by Shivangi Lahiri in Bengaluru)
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