Brisbane-based multinational testing group, ALS saw its shares buck what was a very, very weak market yesterday after reporting better than forecast half-year earnings, a higher dividend and an upbeat earnings forecast for the year to next March.
Read MoreWhile the stock is priced for a recovery in geochemistry Credit Suisse finds little evidence this is occurring. The focus at the result is likely to be on the volume growth in geochemistry and continued margin improvement in life sciences.
Read MoreThe first half guidance issued at the AGM was slightly below Morgans’ expectations. The broker believes peak commodities-driven growth is now behind the company and the health of the exploration and mining capital raisings remain key to the performance in FY20.
Read MoreFY19 net profit was in line with Credit Suisse estimates. Revenue growth occurred across all segments and margins improved in life sciences for the first time in six years.
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A good result from Brisbane-based global testing group ALS yesterday with 27.3% lift in after-tax net profit to $181 million for the 2018-19 year ending March 31.
Read MoreMacquarie expects earnings growth will prove to be robust when the company reports its FY19 result on May 21. Life Sciences produced strong sequential improvement in the first half and the broker expects a margin expansion of 130 basis points in the second half.
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The rebound in global resources and in the wider economy has seen the Brisbane-based global testing giant, ALS Limited boost interim dividend by a third after lifting earnings by 30% on an underlying basis to $93.3 million for the September half of its 2018-19 financial year.
Read MoreShares in Brisbane-based global testing giant, ALS Ltd surged yesterday, adding more than 11% in value after the company’s annual meeting heard an upbeat outlook for the first half of the 2018-19 financial year.
Read MoreManagement expects Alcontrol to provide an additional $8-10m in operating earnings in FY19, which would increase life sciences margins by around 90 basis points.
Read MoreMorgans assesses, in a first glance at the FY18 accounts, that the miss in life sciences is unlikely to offset the better outcome in commodities, with regard to FY19 consensus downgrades and a negative market response.
Read MoreBrisbane-based testing group, ALS Ltd has lifted final dividend on top of a higher interim after reporting an improved underlying performance for 2017-18.
Read MoreALS Ltd ((ALQ)) earnings grew less than brokers expected in the first half, driven by weaker profit growth from the commodities unit and margin declines in life sciences. There was significant working capital outflow and impairment charges, which resulted in a reported loss of -$8.9m. Underlying profit was just inside the low end of the $70-75m guidance range.
Read MoreYou can understand why Brisbane-based testing group, ALS Limited will offer shareholders a $175 million buy back, as well as a higher interim dividend after announcing an underlying net profit after tax of $70.1 million for the six months to September 30, 2017. While the company reported a solid underlying result, the after tax result including one offs saw the impact of more impairments on its assets – this time in its coal testing division.
Read MoreDeutsche Bank considers the outlook for the sector is mixed, with growth in infrastructure expenditure, declining Australian LNG construction and some signs of recovery in global oil & gas capital expenditure.
Read MoreALS reported earnings in line with guidance. A recovery in demand in minerals testing meant the Commodities division posted a stronger than forecast result, but this was offset by softness in Life Sciences.
Read MoreShares in Brisbane based testing group ALS jumped nearly 12% as investors reacted favourably to the release of the 216-17 results late on Tuesday night.
Read MoreAnalytical laboratory business ALS Ltd (ALQ) expects its core minerals division is on an upward trajectory while life sciences, having been affected by several issues, should now turn around. First half net profit of $51.4m was at the lower end of guidance of $50-55m.
Read MoreThe news wasn’t encouraging yesterday for shareholders in Brisbane-based testing giant, ALS (ALQ), which only a month and a bit ago rejected an unwanted $2.7 billion takeover approach.
Read MoreIs the takeover offer for ALS a replay of Treasury Wine Estates and the way it fought off numerous approaches from private equity groups trying to buy the company before a turnaround became apparent – a rebound that has seen Treasury shares double from the original offer price?
Read MoreAnother global Australian company is under takeover threat.
Read MoreManagement has indicated it has large growth opportunities in the life sciences market in environment, food safety and pharmaceutical products, which are estimated growing at 5-7% and ALS has just 0-10% market share.
Read MoreBrisbane-based testing group ALS Ltd (ALQ) saw its shares hammered more than 11% lower yesterday as investors gave the full year results and weak outlook the thumbs down.
Read MoreThe broker has assessed the quarterly earnings reports of ALS peers locally and globally.
Read MoreShares in testing giant ALS (ALQ) shook off a small first half downgrade revealed at yesterday’s annual meeting in Brisbane to close up more than 3%.
Read MoreBrisbane-based testing services group ALS Limited (ALQ) is not letting the downturn in the mining, oil and gas and other areas of the economy (such as water) and a loss in 2014-15 stop it from continuing on its growth plan.
Read MoreIt was a case of good timing when testing and services group ALS Ltd (ALQ) reported its interim financial figures yesterday.
Read MoreLaboratory service provider ALS (ALQ) is between a rock and a hard place. The rock is its major clients, the minerals explorers. The hard place is the current downturn in oil and gas drilling activity. The company delivered initial earnings guidance for the first half of FY15 at its AGM recently. It was subdued. Profit guidance for the first half is $74m, 18% below Goldman Sachs’ prior expectations and 26% below the prior corresponding half. The reasons for the downgrade remain the same as have prevailed for the past six months: market volatility, pressure on sample testing volumes, rate reductions in the coal business and oil and gas revenue slippage in the northern hemisphere. Positive aspects were few and far between, but brokers noted life sciences and industrial business segments are improving.
Read MoreThe broker expects organic growth to remain sluggish in FY15. Despite European peers forecasting organic growth rates of over 6% in 2014 Merrills expects just 2% for ALS.
Read MoreAhead of next month’s result, the broker has reduced ALS forecast earnings by 2% and 10% in FY14-15 to reflect tough comparables for the Minerals division and lower margins in Life Sciences now that lower margin northern hemisphere revenues are a larger part of the business.
Read MoreThe huge publicity over the weak Qantas result and job cuts overshadowed a number of other weak reports and warnings yesterday. Transfield Service was one such weak reporter, while yesterday afternoon, a sharp profit downgrade warning from ALS, the country’s biggest testing group servicing the resources sector, was missed by many, but not all investors.
Read MoreTarget $7.00 (was $7.15). The broker notes the company is looking to buy Reservoir Group to add some oil and gas exposure and further diversify the business away from just the minerals segment. While UBS admits the deal would mainly relate to drilling services, the broker notes it does offer an opportunity to grow into oil and gas laboratory services, which would be a big plus.
Read MoreObviously the board of Brisbane-based ALS (formerly known as Campbell Brothers) isn’t too worried about the slump in activity in the mining and resources sector (its key area of interest) lasting too long, judging by the announcement of two purchases in the sector yesterday – including its biggest deal yet – the more than half a billion dollar purchase of a big UK-owned oil and gas services group called Reservoir Group.
Read MoreWhile FY13 numbers were in line with the broker, it was none the less impressed, saying the result was a testament to the strong management team. Margins held firm despite falling revenue in the minerals division, while cash flow conversion was solid and net debt actually reduced.
Read MoreTarget $9.40 (was $12.10). The broker has taken a look at its numbers ahead of next week’s FY results release. FY13 EPS is down a little, but given increasingly gloomy from talk global peers and customers, FY14-15 EPS is down 11% and 12%.
Read MoreUBS rates the stock as Sell.
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