Increase in provisioning is clearly disappointing, although given cost escalation (great for the builders), probably not overly surprising. Also with a new CFO in place (perhaps for a reason?) he was always going to be conservative as well. Unfortunately todays announcement is going to create uncertainty and share prices don't like uncertainty ... however, looking at the positives:
1. TWR still committed to capital management initiatives, implying continued confidence in solvency and regulatory burdens.
2. The earnings update is hugely impressive. Underlying NPAT of $17-18m for 1H15. This is 30-40% up on 1H14. And typically the seasonality in TWR's earnings is weighted 40% in 1H and 60% in 2H. If this seasonality is replicated in FY15, TWR is on track to deliver Underlying NPAT of ~$40m for FY15 which compares to broker forecasts of ~$30m (as per Morningstar). Massive earnings upgrades on the way?
Could well be the old broker adage ... accumulate on weakness.
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- Ann: Increase in claims provisions, 1H15 earnings guidance
Increase in provisioning is clearly disappointing, although...
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Last
81.0¢ |
Change
0.005(0.62%) |
Mkt cap ! $307.3M |
Open | High | Low | Value | Volume |
80.5¢ | 81.5¢ | 79.0¢ | $72.19K | 88.72K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 38096 | 80.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
83.0¢ | 45900 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 38096 | 0.800 |
1 | 2953 | 0.795 |
2 | 10643 | 0.790 |
2 | 24904 | 0.775 |
1 | 6534 | 0.770 |
Price($) | Vol. | No. |
---|---|---|
0.830 | 45900 | 2 |
0.860 | 43697 | 2 |
0.880 | 44250 | 1 |
0.900 | 22222 | 1 |
0.000 | 0 | 0 |
Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
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