Here Are 2 Companies That Reported Weaker Results Recently
We’re more or less at the end of the earnings season.
As is common with every earnings season, there will be some companies posting growth, some companies posting mixed numbers, and some companies experiencing declines. So, which are the companies that have recently reported declines? Let’s look at two of them:
1. Challenger Technologies Limited (SGX: 573) reported its latest earnings for the first quarter of 2017 two weeks ago.
The company is an IT (information technology) products retailer with 40 stores around Singapore. It also runs an online tech products marketplace called Hachi.tech, which was launched in April 2016.
In the first quarter of 2017, Challenger Technologies’ revenue was down 15% year-on-year S$76.5 million while its profit attributable to shareholders declined 14.7% to S$3.2 million. Although the company had enjoyed higher online sales (online sales now make up around 10% of Challenger Technologies’ total revenue), this was offset by lower retail sales and lower revenue from corporate sales and tradeshows.
But, the company ended the reporting quarter with a strong balance sheet that has S$54.3 million in cash and equivalents and no debt.
The company thinks its business environment is still challenging. But, it is trying to enhance its market position by improving its Hachi.tech platform.
2. Next up we have Singapore Technologies Engineering Ltd (SGX: S63), which released its 2017 first quarter earnings two weeks ago as well.
As a quick introduction, ST Engineering is an engineering conglomerate with a few major business segments, namely, Aerospace, Electronics, Land Systems, and Marine.
The first quarter of 2017 was tough for ST Engineering as it saw its revenue and profit attributable to shareholders fall by 5.4% (to S$1.54 billion) and 6.1% (to S$103.4 million), respectively.
There was an important positive though, and that is the increase in ST Engineering’s order book. The engineering conglomerate ended the reporting quarter with an order book of S$13.3 billion, up from S$11.5 billion a year ago.
Looking ahead, ST Engineering’s 2017 revenue “is expected to be comparable to, while PBT [profit before tax] is expected to be higher than that of FY2016.”