Source: Bloomberg
Company Description
Figure 1: : ANN EBIT by Segment
Source: Company
ANN’s share price fell by -7.2% after the Company reported FY18 net income of $484.3m which missed estimates of $490.7m and net income from continuing operations of $138.8m, which was well below market expectations of $147m. However full year revenue of $1.55bn came in above estimates of $1.50bn.
Divestment of SW division was reflected in the accounts of the Company. Interestingly, despite cost headwinds in raw commodities, sales were up +8.4% on pcp and EPS up +19.1% to 96.5 cps. Higher raw material costs did see group EBIT fall by -11.2%, however this drag appears temporary, as margins improved significantly in 2H18.
We note though, that if increasing raw material costs are sustained and U.S. import tariffs implemented at higher proposed levels, the cost impact, before mitigation, could represent a 5-6cps downside to midpoint of FY19 EPS guidance range. ANN trades on 16.9x PE20, ~2.7% dividend yield – Neutral.
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Source: Company: CC = Constant Currency
Source: BTIG, Company, Bloomberg
1st March 2020
1st October 2019
25th September 2019
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