GMG reported this morning, and at a high level, the results are inline with market expectations for FY24, slightly above the company’s guided range for EPS growth of 13%, delivering 14% growth. For FY25, they have guided to earnings growth of the customary 9% while consensus is already looking for 11.5% growth in earnings for the year ahead. On first pass, this is a miss on guidance, however, the consistency that GMG under promises and over-delivers is high, so we doubt this will be a major issue for the stock, or if it is, it would create a buying opportunity again.
- GMG has already rejected last week’s panic-style low in almost identical fashion to PME and CBA.
- We continue to target the $30 area to re-enter GMG, but how the market digests this morning’s report will determine if this is realistic in the foreseeable future.
MM is likes GMG into dips
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