Elders (ASX:ELD) full year result shows no growth drought
Stock
Elders (ELD) $8.71 as at 12/11/2018
Event
The agribusiness and real estate company is the best performer on the market today after delivering in the FY18 result announced today, beating current estimates across the board. Revenue grew, along with margins across most aspects of the business helping profit grow a solid 9% over FY18.
The stock has encountered a volatile year as sentiment deteriorated on fears the drought would impact activities as well as the glyphosate saga (that plagued Nufarm). Elders had been keen to update the market throughout the year reaffirming guidance in an attempt to allay the fears however the companies positivity wasn’t enough to offset the market’s downbeat attitude towards the sector - the stock had fallen over 20% from its May high’s to yesterday’s close.
Source; Elders FY18 results presentation
In the outlook, Elders remain confident in the progress of the company since Mark Allison took over the CEO role in 2014. The result highlight’s the company’s ability to perform in drought times and will likely lead to a market re-rate.
Elders (ELD) Chart
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Market Matters Take/Outlook
