Australia's Nick Scali set for best day in 3-1/2-years after HY profit beat

Nick Scali

06/02/2024 02:15

(Updates shares, milestones, analyst comments)
    ** Shares of Nick Scali  NCK.AX  climb as much as 19.7% to
A$14.370, set for best day since June 2020, if gains hold 
    ** Stock hits highest level since Feb. 7, 2022
    ** The furniture retailer reports HY net profit after tax of
A$43 mln ($27.86 mln), 4% higher than Visible Alpha consensus,
but lower than A$60.6 mln reported last year 
    ** HY profit slightly higher than the A$40 mln-A$42 mln
forecast range given at October AGM
    ** Jarden Research analysts say NCK has a strong brand,
track record of passing on inflation to customers, and high
margins to absorb cost increases
    ** "We think at least mid-single-digit FY24 NPAT upgrades to
consensus are likely from higher sales and gross margins," Citi
analysts say 
    ** NCK stock top gainer on ASX All Ordinaries index  .AORD 
    ** Stock down ~2.5% this year, as of last close

   ($1 = 1.5432 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))