WES -4.07%: pulled back today, though it was more about FY25 trading to date from Bunnings, which has slowed relative to 2H24 and mildly higher capex guidance than any issues with FY24 numbers, plus of course the stock has run hard in the last couple of weeks trading at all-time highs.
- Revenue $44.19 billion, +1.5% y/y, consensus $43.83 billion
- Net income $2.56 billion, +3.7% y/y, inline with consensus $2.55 billion
- Final dividend per share $1.07 vs. A$1.03 y/y
- Ebit excluding significant items $3.75 billion, +3% y/y
Bunnings is the main driver and that had FY24 revenue of $18.97bn up 2.3% for the year and broadly inline with expectations, while Officeworks was solid, chemicals, energy & fertilizers beat, Industrial & safety missed while health is growing nicely, with overall earnings up 3.3% on the year. While it’s a very diverse & defensive business, its now trading on the expensive side of history ~30x.
- While they never give formal guidance, sales momentum has moderated in their most influential business (Bunnings) to start FY25.
MM is neutral/negative WES ~$74
Add To Hit List
