JHX -4.25%: Fell today following their quarterly update which was a touch soft, but more importantly, they downgraded FY23 guidance down from an underlying profit of $650-$710m to $600-$620m. The market was already sceptical of their prior guidance with consensus before today’s update sitting at $649m, i.e. just below the bottom end of the range. At the mid-point of today’s new guidance (~$610m), it’s a 6% downgrade but there were a few bulge brackets that were already nearer ~$600m – in other words, it wasn’t as bad as it looked. The miss came from a combination of lower volumes and lower realised price increases.
We remain positive on JHX, believing the worst is behind them
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