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Citi Analysts Expect JB Hi-Fi Upgrade

Analysts from Citi reportedly expect upgrades on JB Hi-Fi following record FY19 results, despite a broader Australian retail slump.

Reported by The AustralianCiti expects JB Hi-Fi consensus earnings estimates to be upgraded ~2%, after better than expected full-year earnings.

JB Hi-Fi Limited’s 2H19 dividend of 51 cps was also above Citi’s forecast of 47 cps.

The news comes after shares in JB Hi-Fi skyrocketed 13% to $31.60 in early trade, before stabilising around 8% up to $30.20 before midday.

Citi analysts claim FY19 net profit [$249.8 million] was 3% higher than consensus estimates, also trumping the guidance of $237 million to $245 million.

Analysts warn optimism may be constrained given JB Hi-Fi’s modest FY20 sales guidance.

Citi claims the guidance does requires a further cost-out to maintain margin, citing a higher organic cost growth versus like-for-like implied sales growth.

The news comes as many other Australian retailers grapple with sluggish sales and heavy price competition.

As previously reported, the South African-based owners of David Jones claim the local retail industry is in “recession” – contrasted by the remarks of Amazon Australia’s Country Manager.

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