1H24 results today for the salary packaging and novated leasing company, and there was clearly some concern in the market yesterday with a big drop in the shares following weaker results from two competitors, McMillan Shakespeare (MMS) and SG Fleet (SGF). This morning, SIQ’s 1H result was solid, and inline with expectations, and while no specific guidance was provided for the FY, yesterdays sell-off looks a big overreaction.
- Revenue of $148.5m up 27% and puts them on a run rate ahead of consensus.
- Operating EBITDA $56.2m, up 20% and on a good run-rate
- Profit of $34.1m, slightly ahead of expectations
- The Dividend of 17.5cps fully franked for the half is okay, with their FY results (in March 25) generally the time where the dividend is supplemented with a special.
This looks like a solid update from SIQ, and the stock should recover from yesterdays weakness.
MM remains bullish & long SIQ
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