Currys (LON:CURY) Announces Earnings Results

Currys (LON:CURY) announced its earnings results on Thursday. The company reported GBX 13.40 EPS for the quarter, Digital Look Earnings reports. Currys had a return on equity of 7.10% and a net margin of 1.78%.

Here are the key takeaways from Currys’ conference call:

• Currys reported a solid FY result, with like-for-like sales up 4%, profit before tax up 18% to GBP 191 million, free cash flow of GBP 157 million, and net cash of GBP 176 million. Adjusted EPS rose 19%, and the board proposed a double dividend versus last year.
• The U.K. and Ireland business delivered another year of growth, with like-for-like sales up 3% and recurring service revenue up 7%. Management said the segment held EBIT margin at 2.9% despite wage and national insurance headwinds.
• The Nordics were even stronger, with like-for-like sales up 6%, recurring services revenue up 8%, and adjusted EBIT up 26%. Management highlighted that a stronger NOK amplified the region’s profit improvement in GBP terms.
• Cash generation remained a major strength, helped by disciplined CapEx, improved working capital, and the final large pension contribution as the deficit nears zero. The company also returned cash to shareholders through dividends and buybacks and said future pension payments should drop sharply.
• Management reiterated its at least 3% EBIT margin target and said current trading has started the year “very solidly,” with consensus expectations still seen as achievable. The company also flagged elevated macro uncertainty, possible chip-cost inflation, and a step-up in CapEx to support growth.

Currys Trading Down 1.4%

LON CURY traded down GBX 2.20 during trading hours on Friday, hitting GBX 159.20. The company’s stock had a trading volume of 2,599,790 shares, compared to its average volume of 18,826,188. Currys has a twelve month low of GBX 106 and a twelve month high of GBX 169.41. The firm has a market capitalization of £1.65 billion, a P/E ratio of 13.72 and a beta of 1.26. The company has a quick ratio of 0.29, a current ratio of 0.89 and a debt-to-equity ratio of 39.53. The stock has a fifty day moving average of GBX 143.46 and a 200 day moving average of GBX 139.87.

Analyst Ratings Changes

A number of equities research analysts have commented on CURY shares. Berenberg Bank reissued a “buy” rating and set a GBX 210 price objective on shares of Currys in a report on Thursday. Citigroup upped their target price on shares of Currys from GBX 168 to GBX 184 and gave the stock a “buy” rating in a research report on Friday. Royal Bank Of Canada raised shares of Currys to an “outperform” rating and decreased their price target for the company from GBX 180 to GBX 165 in a research note on Tuesday, June 16th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a GBX 155 price target on shares of Currys in a report on Wednesday, May 20th. Four research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of GBX 178.50.

Currys News Summary

Here are the key news stories impacting Currys this week:

• Positive Sentiment: Citigroup raised its price target on Currys to GBX 184 from GBX 168 and reiterated a buy rating, suggesting analysts see further upside from current levels. Digital Look
• Positive Sentiment: Berenberg also reaffirmed its buy rating and set a higher GBX 210 price target, reinforcing a constructive view on the stock. Digital Look
• Positive Sentiment: Currys announced a new £50 million share buyback, which can support the share price by reducing the share count and signaling management’s confidence in valuation. Currys Launches New £50m Share Buyback to Boost Capital Efficiency
• Positive Sentiment: The company reported full-year results showing higher revenue, profits, cash returns and margins, with Nordics growth helping performance, which should be supportive for investor sentiment. Currys lifts profits cash returns and margins as Nordics drive growth
• Neutral Sentiment: Currys also confirmed its latest earnings release, with reported EPS of GBX 13.40 and solid return on equity and net margin figures, but the market may already have digested much of this update. Earnings Transcript

Currys announced that its board has authorized a share buyback program on Thursday, July 2nd that allows the company to buyback 0 shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

About Currys

Currys plc is a leading omnichannel retailer of technology products and services, operating online and through over 800
stores in 8 countries. We Help Everyone Enjoy Amazing Technology, however they choose to shop with us.

In the UK & Ireland we trade as Currys; in the Nordics under the Elkjøp brand and as Kotsovolos in Greece. In each of
these markets we are the market leader, employing 28,000 capable and committed colleagues. Our full range of services
and support makes it easy for our customers to discover, choose, afford and enjoy the right technology for them,
throughout their lives.