Currys (LON:CURY) Releases Quarterly Earnings Results

Currys (LON:CURY) posted its earnings results on Thursday. The company reported GBX 13.40 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Currys had a return on equity of 5.88% and a net margin of 1.46%.

Here are the key takeaways from Currys’ conference call:

• Currys reported a solid FY result, with like-for-like sales up 4%, profit before tax up 18% to GBP 191 million, free cash flow of GBP 157 million, and net cash of GBP 176 million. Adjusted EPS rose 19%, and the board proposed a double dividend versus last year.
• The U.K. and Ireland business delivered another year of growth, with like-for-like sales up 3% and recurring service revenue up 7%. Management said the segment held EBIT margin at 2.9% despite wage and national insurance headwinds.
• The Nordics were even stronger, with like-for-like sales up 6%, recurring services revenue up 8%, and adjusted EBIT up 26%. Management highlighted that a stronger NOK amplified the region’s profit improvement in GBP terms.
• Cash generation remained a major strength, helped by disciplined CapEx, improved working capital, and the final large pension contribution as the deficit nears zero. The company also returned cash to shareholders through dividends and buybacks and said future pension payments should drop sharply.
• Management reiterated its at least 3% EBIT margin target and said current trading has started the year “very solidly,” with consensus expectations still seen as achievable. The company also flagged elevated macro uncertainty, possible chip-cost inflation, and a step-up in CapEx to support growth.

Currys Stock Down 0.9%

Shares of CURY stock traded down GBX 1.40 on Friday, hitting GBX 160. The stock had a trading volume of 2,336,731 shares, compared to its average volume of 18,824,102. Currys has a 12-month low of GBX 106 and a 12-month high of GBX 169.41. The business has a 50 day moving average of GBX 142.87 and a 200 day moving average of GBX 139.73. The company has a debt-to-equity ratio of 40.08, a current ratio of 0.87 and a quick ratio of 0.29. The stock has a market cap of £1.66 billion, a price-to-earnings ratio of 13.79 and a beta of 1.27.

Analyst Ratings Changes

CURY has been the subject of several research reports. Citigroup boosted their price objective on shares of Currys from GBX 168 to GBX 184 and gave the company a “buy” rating in a research note on Friday. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a GBX 155 price target on shares of Currys in a research report on Wednesday, May 20th. Berenberg Bank restated a “buy” rating and set a GBX 210 price objective on shares of Currys in a research note on Thursday. Finally, Royal Bank Of Canada raised shares of Currys to an “outperform” rating and dropped their target price for the stock from GBX 180 to GBX 165 in a report on Tuesday, June 16th. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of GBX 178.50.

Currys announced that its board has approved a share repurchase plan on Thursday, July 2nd that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Currys Company Profile

Currys plc is a leading omnichannel retailer of technology products and services, operating online and through over 800
stores in 8 countries. We Help Everyone Enjoy Amazing Technology, however they choose to shop with us.

In the UK & Ireland we trade as Currys; in the Nordics under the Elkjøp brand and as Kotsovolos in Greece. In each of
these markets we are the market leader, employing 28,000 capable and committed colleagues. Our full range of services
and support makes it easy for our customers to discover, choose, afford and enjoy the right technology for them,
throughout their lives.