Currys (LON:CURY) Issues Quarterly Earnings Results

Currys (LON:CURY) released its earnings results on Thursday. The company reported GBX 13.40 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Currys had a net margin of 1.46% and a return on equity of 5.88%.

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 3.3%

CURY opened at GBX 158.20 on Thursday. The stock has a market capitalization of £1.64 billion, a PE ratio of 13.64 and a beta of 1.27. Currys has a one year low of GBX 106 and a one year high of GBX 169.41. The company has a debt-to-equity ratio of 40.08, a quick ratio of 0.29 and a current ratio of 0.87. The business’s 50 day moving average price is GBX 142.23 and its 200 day moving average price is GBX 139.50.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Royal Bank Of Canada raised shares of Currys to an “outperform” rating and dropped their price objective for the company from GBX 180 to GBX 165 in a research note on Tuesday, June 16th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a GBX 155 price target on shares of Currys in a research report on Wednesday, May 20th. Finally, Berenberg Bank reiterated a “buy” rating and set a GBX 210 price objective on shares of Currys in a research report on Thursday. Four analysts have rated the stock with a Buy rating, According to MarketBeat, the company has an average rating of “Buy” and an average target price of GBX 174.

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.