Elders (ELD) shares rally with strong guidance
ELD +11%: the agricultural services business jumped to more than decade-highs today on the back of a strong trading update. Full year guidance was given for the first time in FY22 for the September year end, the company predicting EBIT growth twice as strong as consensus estimates, in the range of 20-30%. They’ve benefitted from strong conditions across the sector with bumper crop volumes, strong livestock prices and a broad increase in activity across their business lines. Clearly a solid update and while management have been doing well to improve the business, it’s clearly been given a head start this year with strong macro tailwinds. They’ve left the door open for a miss in case of supply chain disruptions, weather events of a sharp move in commodity prices.
