Ardent Leisure Group
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AAD Details
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Growth across all the divisions:Ardent Leisure Group (ASX: AAD) stock rose over 14% on August 24, 2016 after the company reported FY 16 earnings. The FY16 core earnings rose 11% to $62.4 million and the revenue increased 15.6% to $687.6 million driven by growth across every division. The Main Event revenue increased by 21.6% and EBITDA is up 18.7% owing to expansion of the high?returning, high yield business division and due to opening of seven centers in the year. The Bowling revenue grew 12.0% and EBITDA grew 30.3% as the strategy to transition from solely bowling to a multi?attraction entertainment business gained momentum. The Theme Parks revenue was up 8.0% and EBITDA was up 8.5% due to unique experiences and improved customer service. Moreover, AAD’s key driver will be Main Event and the company has planned to open 11 centers in FY 17. The company would continue to implement the turnaround strategy for Bowling. Meanwhile, AAD stock has risen 38.9% in the last six months as on August 23, 2016.
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Recommendation:We give a “Hold” recommendation on the stock at the current price of $2.85
Financial Performance for FY 16 (Source: Company Reports)
iSentia Group Ltd
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ISD Details
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Estimates solid earnings per share growth by 2020: iSentia Group Ltd (ASX: ISD) stock rose 16.7% on August 24, 2016 after the company reported FY 16 financial results. ISD’s revenue grew 23% to $156.0 million and the underlying NPATA increased 19% to $32.6 million on yoy basis. The full year pro forma revenues from the King Content acquisition increased 68% year on year, well ahead of the expectations. Moreover, ISD expects to report the revenue and EBITDA growth in the low to mid-teens in FY17 and for the three years beyond FY17, ISD’s 2020 strategy is expected to deliver strong revenue and earnings per share growth. Meanwhile, ISD stock has fallen 19.01% in the last three months (as on August 23,2016) as investors were wary over the group’s organic growth which is still a concern.
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Recommendation:The stock is also trading at a high P/E and accordingly, we give an “Expensive” recommendation on the stock at the current price of $3.63
Financial Performance for FY 16 (Source: Company Reports)
Sirtex Medical Limited
SRX Details
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Strong earnings for FY 16: Sirtex Medical Limited (ASX: SRX) stock rose 12% on August 24, 2016 after the company reported 32.8% growth in Net Profit After Tax (NPAT) of $53.6 million for FY 16 against previous corresponding period (pcp). The profit growth is due to the strong double digit dose sales growth, and the transactional benefit of a lower Australian Dollar versus the US Dollar and Euro over the period. The group’s global dose sales of SIR-Spheres microspheres increased 16.4 per cent to 11,931 units against 10,252 units sold in the pcp. SRX intends to continue to expand the core SIR Spheres microspheres business globally via ongoing solid investment into sales and marketing, clinical and medical functions required to build awareness and drive adoption. This supports the long term growth in existing markets, facilitates new market entries and delivers expanded reimbursement for patients. Moreover, SRX anticipates the double digit dose sales growth to continue in FY17.
· Recommendation: We put a “Hold” recommendation on the stock at the current price of $34.80
Financial Performance for FY 16 (Source: Company Reports)
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