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 Australian, Citi 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.