discoverIE Group (LON:DSCV) Posts Quarterly Earnings Results

discoverIE Group (LON:DSCV) issued its quarterly earnings data on Wednesday. The company reported GBX 41.30 earnings per share for the quarter, Digital Look Earnings reports. The firm had revenue of £443.30 million for the quarter. discoverIE Group had a net margin of 6.05% and a return on equity of 8.34%.

Here are the key takeaways from discoverIE Group’s conference call:

• Trading momentum improved through the year, with Q4 organic orders up 14% and sales up 5%, helping the company exit the year strongly and return to organic growth across the business.
• Adjusted operating profit rose 1% and adjusted EPS increased 4%, while the adjusted operating margin held relatively steady at 13.8% despite higher investment in growth.
• Cash generation remained very strong, with 92% free cash flow conversion, and working capital as a percentage of sales improved to 16.6%, supporting self-funded growth and acquisitions.
• The company completed or announced three acquisitions focused on higher-growth, higher-margin markets, particularly defense and aerospace, and expects the deals to be accretive to margins over time.
• Outlook and order momentum remain encouraging: Q1 trading started well, orders are still running ahead of sales, and management said the business is in good shape for the year ahead with a strong design-win and acquisition pipeline.

discoverIE Group Stock Down 1.0%

DSCV opened at GBX 770 on Wednesday. The company has a current ratio of 1.48, a quick ratio of 0.96 and a debt-to-equity ratio of 83.72. The stock’s fifty day simple moving average is GBX 637.55 and its 200 day simple moving average is GBX 617.01. discoverIE Group has a 1-year low of GBX 505 and a 1-year high of GBX 800. The stock has a market cap of £747.83 million, a PE ratio of 29.28 and a beta of 1.19.

Wall Street Analyst Weigh In

DSCV has been the topic of several recent analyst reports. Shore Capital Group restated a “buy” rating on shares of discoverIE Group in a research report on Friday, April 17th. Jefferies Financial Group reiterated a “hold” rating and issued a GBX 685 price objective on shares of discoverIE Group in a research report on Friday, April 17th. Berenberg Bank reiterated a “buy” rating and set a GBX 950 target price on shares of discoverIE Group in a research report on Thursday, April 23rd. Stifel Nicolaus restated a “buy” rating and issued a GBX 1,000 price objective on shares of discoverIE Group in a research report on Friday, April 17th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a GBX 870 price objective on shares of discoverIE Group in a report on Monday, April 20th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, discoverIE Group presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 875.83.

About discoverIE Group

discoverIE Group plc is an international group of businesses that design and manufacture innovative electronic components for industrial use. The Group provides application-specific components to original equipment manufacturers (“OEMs”) internationally, with a focus on key markets driven by structural growth and increasing electronic content, namely renewable energy, medical, transportation, security, and industrial & connectivity.

The Group employs c.4,500 people across 20 countries. Its principal operating units are located in Continental Europe, the UK, China, Sri Lanka, India, Thailand, Mexico and the USA.