Bodycote (LON:BOY) Issues Quarterly Earnings Results

Bodycote (LON:BOY) released its quarterly earnings results on Tuesday. The company reported GBX 18.10 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Bodycote had a return on equity of 8.58% and a net margin of 7.55%.

Here are the key takeaways from Bodycote’s conference call:

• Strong first-half performance: Core organic revenue grew 9.6%, led by Aerospace & Defense, industrial gas turbines and a recovery in medical, more than offsetting a 4.4% decline in automotive. Adjusted EPS increased 18.3% to £0.252.
• Group operating margin improved 110 basis points to 16%, supported by the Optimise restructuring program, lower-cost operations and reduced exposure to low-margin non-core activities. Management expects further Optimise benefits and volume leverage in the second half.
• Optimise remains on track, with 29 of 31 planned footprint actions expected to be completed by year-end and at least £15 million of annualized benefits targeted by mid-2027. The company is evaluating a further phase focused mainly on structurally challenged automotive operations, but acknowledged that returns may be less attractive than in the initial phase.
• Full-year guidance was reaffirmed, although second-half growth is expected to moderate because of tougher comparisons and core margins remain subject to variable-pay normalization and new-site investment costs. Capital expenditure is expected near the lower end of the previously guided £80 million–£90 million range, while the company continues its £80 million buyback and selective M&A strategy.

Bodycote Trading Down 0.9%

Shares of BOY stock opened at GBX 683.50 on Wednesday. The company has a current ratio of 1.15, a quick ratio of 0.74 and a debt-to-equity ratio of 29.80. The stock has a market cap of £1.16 billion, a P/E ratio of 22.05, a price-to-earnings-growth ratio of 1.44 and a beta of 1.35. The stock has a 50 day simple moving average of GBX 714.61 and a 200 day simple moving average of GBX 713.33. Bodycote has a 1 year low of GBX 573 and a 1 year high of GBX 850.

Analyst Ratings Changes

Several research analysts have weighed in on BOY shares. Royal Bank Of Canada reiterated a “sector perform” rating and set a GBX 750 price objective on shares of Bodycote in a research report on Wednesday. Deutsche Bank Aktiengesellschaft raised shares of Bodycote to a “buy” rating and boosted their target price for the company from GBX 835 to GBX 960 in a research report on Thursday, May 28th. Finally, Berenberg Bank restated a “buy” rating and issued a GBX 900 price target on shares of Bodycote in a research note on Wednesday. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Bodycote presently has an average rating of “Moderate Buy” and a consensus price target of GBX 846.67.

Bodycote Company Profile

The leading provider of heat treatment and specialist thermal processing services worldwide.

Heat treatment encompasses a variety of techniques and specialist engineering processes which improve the properties of metals and alloys and extend the life of components and is a vital part of any manufacturing process.

Bodycote is uniquely placed via our global network and the experience and knowledge of our people to offer high quality, reliable and cost-effective services to manufacturers whatever their size or market sector.