Newcrest 1H19 Result

Posted on | by Leon Hinde

Newcrest is under Algo Engine sell conditions. Our preference is for Northern Star and OceanaGold.

NCM 1H FY19 NPAT beat consensus, with profit coming in at US$237m. EBITDA of US$739m also beat consensus, supported by lower operational costs.

NCM declared a US 7.5cps fully franked dividend, which flat on the same time last year.

We consider NCM expensive relative to peers.

 

Treasury Wine – 1H19 Earnings

Posted on | by Leon Hinde

TWE 1H19 earnings met market consensus at $339m. 

Earnings from American markets exceeded expectations, whilst Asia was slightly below the elevated guidance.

Overall the result looks okay with continued EPS growth in the 20 – 25% range.

Based on EPS growth into 2020, we have TWE on a 2.8% forward yield.

Tabcorp – Algo Update

Posted on | by Leon Hinde

Tabcorp Holdings, (TAH), 1H19 result showed EBITDA at $360m and 1H NPAT at $132m. These numbers were slightly below consensus. There appears a willingness to reinvesting Lotteries’ based income, into the Wagering business to defend and grow market share.

Cost synergy savings from the Tatts merger was raised to $130-145m, which should help to underpin the stock.

Tabcorp now trades on  a forward yield of 5% and we expect EPS growth to track in the 5 – 6% range.  We note the recent Algo Engine sell signal going into yesterday’s earnings release.

 

 

 

 

Cleanaway Waste Management

Posted on | by Leon Hinde

CWY was on our high conviction list and the stock has jumped over 10% today following the 1H19 earnings announcement.

The result was ahead of market consensus with underlying net profit after tax of $67m. Revenue growth was up 9% on the same time last year.

The company lifted net profit after tax by 35% for the first half FY19 on the back of organic growth and the acquisition of rival Tox Free.

Based on FY19 earnings we have CWY trading on a 1.8% dividend yield.

 

Incitec Pivot – Long Term Value

Posted on | by Leon Hinde

Incitec Pivot, (IPL) is under Algo Engine buy conditions and despite the earnings impact from the North Queensland floods, we see value for patient investors.

Heavy rainfall in North Queensland has resulted in the shutdown of Incitec Pivot’s Phosphate Hill plant, (closure of the rail line between Townsville and Phosphate Hill).

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