ComfortDelGro Corporation Ltd: 3 Things Investors Should Know About Its 2017 Second Quarter Results
ComfortDelGro Corporation Ltd (SGX: C52) is a land transport company with operations mainly in Singapore, Australia, the United Kingdom, and China. It is also the majority owner of two other Singapore-listed companies, the vehicle and non-vehicle testing and inspection outfit Vicom Limited (SGX: V01), and bus and rail services operator SBS Transit Ltd (SGX: S61).
Two weeks ago, the company reported its 2017 second quarter earnings. Let’s look at three useful pieces of information investors may want to know from the announcement:
1. The overall result
The table below shows some of the important numbers from ComfortDeGro’s income statement for the second quarters of 2017 and 2016:
Source: ComfortDelGro 2017 second quarter earnings release
We can see that the important numbers were all lower in the second quarter of 2017 as compared to the same period a year ago. This was driven primarily by weaker performance in the taxi segment as a result of increased competition and a negative foreign currency translation.
2. Segmental revenue and operating profit performance
Here’s a table showing the year-on-year changes in revenue and operating profit for each of ComfortDelGro’s seven business segments in the second quarter of 2017:
Source: ComfortDelGro 2017 second quarter earnings release
We can see that other than the Public Transport segment, all other segments saw their revenue fall or stay stagnant. Meanwhile, all seven segments reported flat or lower operating profit in the reporting quarter.
3. What lies ahead
As investors, we rely on many tools, including management’s forecasts, to help us gain insight on what to expect for the near- to long-term performance of our investments’ businesses.
As for ComfortDelGro, this is what the company said about its future in its earnings release:
Source: ComfortDelGro 2017 second quarter earnings release
It’s obvious that ComfortDelGro’s revenue outlook for 2017 is rather bleak, with all segments (except for Public Transport Services and Driving Centre) expected to see lower revenue.
As such, investors may want to pay attention to how well ComfortDelGro can manage its costs in such a challenging environment.
