Another impeccably clean result from ARB (my definition of "clean" is when it takes less than 180 seconds for me to reconcile my financial model to the reported financial statements).
Trouble is, it wasn't a result that shot the lights out (a bit like 80% of ARB's results), but I guess 8% growth in Pre-Tax Profit [*] is not to be scoffed at, especially in exchange rate, and external business, environments that are presenting headwinds to shoot-the-lights-out type financial performance.
The US result - where so much value opportunity exists for ARB - disappointed me a bit. US Revenues were up 3% in A$-terms, and some 7% on a constant currency basis. They invested further costs into that business, given the halving in its profit contribution.
It appears that market is going to be somewhat of a tough nut to crack.
All up, not a poor result (ARB's never are), but certainly not something that will enhance the twenty-something P/E multiple, let alone support it where it currently stands.
([*] NPAT was up 6% on pcp, but the tax rare was 110bp higher in DH2016)
ARB Price at posting:
$15.66 Sentiment: Hold Disclosure: Held
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