AO World Shares Rally on Fourth Guidance Upgrade

AO World Shares Rally on Fourth Guidance Upgrade

0803 GMT - Shares in AO World rise 11% to 75 pence after the online electrical-goods retailer raised its 2023 earnings guidance for the fourth time since last summer. Shares have begun to rally, but they have more room for growth, Jefferies says in a note, lifting its target price to 90 pence from 85 pence on the buy-rated stock. The group's 2H Ebitda margin is now set to pass 6%, already ahead of the medium-term 5% guidance, which demonstrate AO's success in building its profitability, analyst Andrew Wade and associate Grace Gilberg say, who see a return to top-line growth in 2H 2024. "With continuing earnings momentum, a firm focus on profit, and a return to growth in the year ahead, we see further upside," they say. ([e-mail])

 
Companies News: 

National Grid Sees FY 2023 Performance in Line, Underlying EPS Growth in Middle of 6%-8% Range

National Grid PLC said Friday that performance for fiscal 2023 has been in line with its expectations and that it continues to expect underlying earnings per share growth for the year in the middle of the 6%-8% growth range.

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AO World Sees FY 2023 Profits at Top End of Guidance

AO World PLC said Friday that it now expects fiscal 2023 profits to come in at the top end of its guidance as the potential adverse effects from trading risks, macroeconomic uncertainty and a tough consumer environment haven't materialized to the extent it had warned of in late February.

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Superdry Withdraws FY 2023 Profit Guidance; Considers Equity Capital Raise

Superdry PLC on Friday withdrew its profit guidance for fiscal 2023, citing the challenging environment and after experiencing slower-than-expected retail sales, and said it is considering an equity issue to strengthen its balance sheet.

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Premier Miton Group Assets Under Management Slipped in 2Q

Premier Miton Group PLC on Friday said its assets under management fell slightly in the second quarter of fiscal 2023 compared with the first quarter, but were higher than the six months prior as the banking shock toward the end of the period dented risk appetite.

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Dr. Martens Expects FY 23 Revenue Rise, Earnings Fall; CFO to Step Down

Dr. Martens PLC said Friday that it expects revenue to rise but earnings to fall in fiscal 2023, and that its chief financial officer will step down.

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888 Holdings 2022 Adjusted Earnings Rose Following William Hill Combination

888 Holdings PLC said Friday that pretax profit fell for 2022, but that adjusted earnings rose following its combination with William Hill.

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Hays Sees 2H Operating Profit Modestly Above 1H

Hays PLC on Friday said it expects operating profit for the second half of the year to be modestly higher than the first half as it posted a 5% rise in net fees on a like-for-like basis for the third quarter of fiscal 2023.

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Mirriad Advertising Terminates Sale Process

Mirriad Advertising PLC said Friday that it has decided to terminate its sale process as it believes there is no prospect that an offer will be forthcoming by early April.

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Carclo Sees FY 2023 Profit Decline After End of Manufacturing Contract

Carclo PLC said Friday that it expects to report that profit for fiscal 2023 fell after it faced various challenges including the ending of a manufacturing contract.

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YouGov Appoints Steve Hatch as CEO

YouGov PLC said Friday that it has appointed Steve Hatch as its next chief executive and that he will join the company on Aug. 1.

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Van Elle Sees FY 2023 Pretax Profit in Line, Revenue Rise

Van Elle Holdings PLC said Friday that it expects fiscal 2023 pretax profit to be in line with market expectations and revenue to rise 20%, but is preparing for weaker market conditions going into the new fiscal year.

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Superdry Withdraws FY 2023 Profit Guidance; Considers Equity Capital Raise -- Update

Superdry PLC on Friday withdrew its profit guidance for fiscal 2023, citing the challenging environment and after experiencing slower-than-expected retail sales, and said it is considering an equity issue to strengthen its balance sheet.

 
Market Talk: 

888 Holdings' No News Is Good News

0838 GMT - 888 Holdings' 2022 results contained almost nothing to see, but in this case no news from this highly leveraged business is good news, Peel Hunt analysts say in a research note. Going forward, Peel Hunt thinks the upcoming proposals for the reform of gambling laws won't undermine the London-listed online betting-and-gaming company's business, that growth will be restored and that debt will start to be paid down. What's more, synergies are on track and there is plenty going on commercially to suggest that 888 can return to top-line growth. Peel Hunt says that, with shares priced for failure, it retains its buy rating on the stock with a target price of 150 pence. Shares trade up 15% at 70.80 pence. ([e-mail])

Superdry's Struggles Cast Doubt on Brand's Relevance

0834 GMT - Superdry's soggy sales outlook show the clothing brand is really struggling in an environment in which shoppers are more careful with their money, says AJ Bell in a market comment after the British group withdrew its profit guidance for 2023. "Blaming the weather for poor performance is never something likely to endear a business to investors and yet Superdry reaches for this excuse as it seeks to explain a downturn in sales in February and March," says investment director Russ Mould, adding the update fuels the argument that the brand has lost relevance with fewer people prepared to pay a premium for its faux-Japanese stylings. Shares shed 16.6% at 89.1 pence and are down 30% year to date. ([e-mail])

Superdry Shares Drop to Pandemic Lows as Profit Guidance Scrapped

0822 GMT - Superdry's shares have slumped to their lowest price since March 2020 after the company withdrew its 2023 pretax profit guidance, citing slowing retail sales growth and continued wholesale challenges. The British clothing brand said it is also considering an equity raise of up to 20% of its share capital, which its CEO will support and materially participate in. While the fundraise appears pressing due to weak cash flows and high expenses, the update is overall disappointing, Jefferies analysts Andrew Wade and associate Grace Gilberg say. Shares are down 16.3% at 89.4 pence. ([e-mail])

Dr. Martens' Long-Term Growth Potential May Offset Near-Term Issues

0752 GMT - Dr. Martens is challenged by several issues in the near term, but the growth potential of the British footwear and clothing brand could attract patient investors, RBC Capital Markets analyst Piral Dadhania writes in a research note. Tough comparatives, overly optimistic management, ambitious targets and execution missteps are near-term challenges facing the company, Dadhania says. "However for longer-term investors able to ride out a few years of softer revenue growth, the long-term growth potential for this business is yet to be realized," she says. Shares are up 0.9% at 142.50 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

04-14-23 0459ET