Share
1,646 Posts.
lightbulb Created with Sketch. 202
clock Created with Sketch. 14/06/18
15:54
Share
Originally posted by goodie3shoes
↑
Ord Minnett view – "We believe the most likely reason for the share price weakness is that the flow of contracts has fallen behind the run rate required to hit FY19 consensus forecasts. Putting this into context, we forecast $400m of revenue growth in FY19 to $2.3bn (FY18: $1.9bn). Within this, there is a net reduction in solar due to $200m of work completing, meaning the company needs to win a net $650m to hit our estimates. So far, contracts of only $100m have been announced in 2H18, meaning contracts worth $550m in FY19 are needed to achieve our forecast. This is becoming increasingly unlikely, although we refrain from reviewing our estimates ahead of the Auckland City Rail Link announcement. Also, consensus is at $2.1bn of contracts (low estimate $1.9bn), meaning 2H18E wins of only $200–400m may be required to achieve consensus.
Expand
No ASX release, but I note today's price jump in the context of the following announcement:https://www.trenchless-australasia.com/2018/06/14/melbourne-water-awards-au500-million-contract/
