Stagecoach - Adjusted earnings ahead of expectations

Wednesday, 5th December 2018 09:20 - by Rajan Dhall

Good news for Stagecoach this morning at the latest Interim results for the half-year ended 27 October 2018 look good enough for the share price to move higher. Highlights:

·  Adjusted earnings ahead of expectations, principally reflecting:

·  Positive resolution of contractual matters for the former South West Trains franchise

·  Strong profitability at Virgin Rail Group

·  Adjusted earnings per share 12.9 pence (H1 2018: 13.6 pence)

·  Prior year includes strong contribution from the South West Trains franchise that ended in August 2017

·  Statutory loss per share 5.5 pence (H1 2018: earnings per share 13.6 pence)

·  £85.4m non-cash exceptional impairment charge in respect of North America goodwill

·  Interim dividend maintained at 3.8 pence per share

·   Full-year adjusted earnings will reflect the rail out-performance in the first half of the year

The company have resolved some of the issues faced with South West Trains and now the company are moving forward nicely. On the longer 

term charts the performance looks very bearish but zooming into the daily it looks like the Co. has the potential to turn around their fortunes and

head to higher levels. From a technical perspective, a break of 173p would confirm the trend change as it would be a higher high and a higher 

low wave formation, but it is backed by higher volume supporting higher prices which is confirmed by the on balance volume indicator.

Elsewhere, a move higher past the downward sloping trendline could also indicate a change in trend, but all in all a good update and things are

looking up for the bus operator. 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.