NEC was the second-worst-performing stock on the main board today, closing down 12.2% following yesterday’s announcement of its FY results. We felt the sell off was overdone:
- Revenue of $2.68bn, +2.2% YoY, was in line with $2.68bn estimates.
- NPAT came in $103.9mn, down 6.3% YoY.
- EBITDA excluding items came in at $486.1mn, down 6% YoY.
- A 4c dividend was announced, below last year’s 4.5c.
A special dividend of 49c fully franked was announced following the sale of Domain – seems the market was likely looking for more given the share price reaction.
MM is long and cautiously bullish NEC
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