Agree Neoteric, 2HFY18 looks decidedly ordinary on the updated...

First 3 Last

Share
Profile

Follow
PortfolioPlus

4,589 Posts.

443

26/06/18

09:20

Post #: 33945210
Share

Originally posted by neoteric ↑

mmm DWS continue to scramble to shore up earnings which continue to slide, now unashamedly doing so in the same announcement!

I calculate this downgrade to be a 25% fall in underlying earnings, with Und EPS of about 10 cents for FY18. But guess what, the announced acquisition will add 3.5 cents to FY19 EPS and take earnings back to where they were in FY17! What neat symmetry by management.

The fact is that EPS even after this acquisition (if it performs as hoped) will still be below levels of FY10 and FY12 despite major acquisitions of Symplicit and Phoenix and the leveraging of the company.

I lightened up after the 1H18 report where the earn out write back masked further deterioration in the business. But it seems even more lightening will be needed now.

Expand

Agree Neoteric, 2HFY18 looks decidedly ordinary on the updated EBITDA as given. A statutory NPAT of around $16m. Arrived at same underlying EPS for FY18 @ 10.1c (Symplicit earn out). Hard to see FY19 eps even adjusting for the new acquisition of greater than 12.5c.
This really is a "buy a biz" to patch up for organic loss...so we will never ever see the cash not distributed as dividends. CAGR of EBIT/share over 5 years is just 2.14%
Off Watchlist #1 and onto Watchlist #2.

DWS Price at posting: $1.26 Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

ASE

Astute delivers high-grade lithium hits at Red Mountain

SGQ

St George banks $5M from placement to ramp up Araxá Rare Earths Project

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

RNU

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

Most investors will get this earnings season wrong. Will you?

FTL

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

First 3 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Agree Neoteric, 2HFY18 looks decidedly ordinary on the updated...

Top Stories

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

Astute delivers high-grade lithium hits at Red Mountain

St George banks $5M from placement to ramp up Araxá Rare Earths Project

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

Most investors will get this earnings season wrong. Will you?

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

Featured News