Smiths Group, a leading engineering company, is set to announce its fiscal 2023 results on Tuesday. Here are the key details you need to know:
Pretax Profit Expectations
Analysts from Visible Alpha have provided a market consensus of eight analysts, forecasting a pretax profit of GBP366.35 million ($448.25 million) for the year ending on July 31. This would signify significant growth compared to the previous year's figure of GBP103 million.
Revenue Forecast
According to a consensus compiled by the company from ten analysts, Smiths Group is expected to report revenue of GBP2.99 billion for the period, an increase from the GBP2.57 billion recorded in fiscal 2022.
What to Watch For
Guidance for Fiscal 2024
In a note, AJ Bell's Russ Mould and Danni Hewson highlight that analysts and shareholders will be eagerly awaiting guidance for fiscal 2024. It is anticipated that the guidance will align with the company's medium-term financial targets. These targets include sales growth between 4% and 6%, earnings-per-share growth of 7%-10%, and an operating margin of 18%-20%. Additionally, Smiths Group aims for a return on capital employed of 15%-17% and plans to at least double its operating cash conversion during the period.
Dividend Increase
Following a dividend payout reduction during the pandemic, Smiths Group has successfully begun rebuilding momentum. It recently increased its interim payment in the half-year by 5% to 12.9 pence per share. Analysts expect a full-year dividend of 42 pence per share, compared to 39.6 pence per share in 2022, according to AJ Bell.
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