Sat. Aug 24th, 2019

Computershare announces $200m share buy-back

1 min read


“The results were reasonably solid and broadly in line with expectations,” he said. “The buy-back is also a reasonable application of excess capital, and it’s worth noting that it came along with an increased dividend.”

Computershare boss Stuart Irving also said he was pleased with the results.

“Computershare delivered a strong performance,” he said. “Earnings were slightly ahead of guidance with improved contributions from all major business lines, margin income gains and a reduced tax rate.

“We continue to lay the foundations for sustained growth with disciplined investments in our growth engines, tight cost controls and selective complementary acquisitions.”

Mr Irving made no comment on the buy-back plan, which would send more than 13 million shares back into the hands of Computershare if the stock price remains steady at around $15 over the next three weeks.

Forward guidance

The Melbourne-founded company – which provides computer bureau services to share registrars – said earnings per share for the 2020 financial year were expected to decrease by 5 per cent  due to delayed benefits of a platform migration in the UK mortgage services business and the adoption of new accounting standards.

Credit Suisse analyst Andrew Adams called it disappointing in a note to investors.

“Headline FY20 guidance looks disappointing,” he said. “The earnings risk does still appear to be to the downside.”



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *