Boral [ASX:BLD] Shares Up 8.1% after Beating Profit Expectations

Australia’s largest building and construction materials supplier Boral [ASX:BLD] has returned to its former glory with significant gains across most metrics in a challenging economic climate. Boral also told shareholders it will continue raising the price of cement, gravel, and asphalt in the new financial year as soaring interest rates push down the construction of new homes. Shares of the company were up by 8.12%, trading at $4.72 per share this afternoon, as the results understandably enthused investors. Boral has seen its share price rise by 63.28% in the past 12 months, outperforming the sector by almost 50% this year. Source: TradingView Boral’s FY23 results Boral beat most expectations and guidance this year with a strong earnings report today. The company’s net revenue rose 17% to $3.5 billion in the year to 30 June, while earnings jumped 38% to $454.4 million. Operating cash flow lifted 65.5% to $358.7 million. However, Boral’s statutory net profit after tax came in at $148.1 million for the 2023 financial year, down from $150 million in the previous year. This also included a post-tax income of $977.6 million from the sale of its US business, Eco Material Technologies. In other disappointing news for shareholders, the company will also not pay dividends this year. Boral CEO Vik Bansal said he expects cost pressures to linger for the next 12–18 months, which the company will pass on to its customers. However, he signalled that the increases wouldn’t be as sharp as last financial year. ‘There will be price increases because cost will increase. ‘I’m not saying the price is going to remain steady. All I’m saying is the rate of increase will slow down.’ Bansal said he was bullish about starting the new financial year and boasted about a solid project pipeline from the second half of the year onwards. About today’s results, he commented: ‘I am pleased to see Boral deliver a set of full-year results that show clear improvement across the entire business and point to the opportunities that remain ahead. We have seen volume growth across all our products, coupled with a disciplined approach to price, cost, and cash.’ Boral is a major supplier of construction materials in Australia. It operates more than 300 sites nationwide, making concrete, cement, quarrying stone, recycling construction waste, and processing asphalt and bitumen. Outlook for Boral Today’s results give shareholders and investors a good peek into a company that has successfully turned around many parts of the company. With the rising costs of inputs, the company implemented ‘long overdue’ price increases across all its products, shown here: Source: Boral Some may blame the company for sharp raises under the pretext for inflation but as the cost figures indicate, these were in line with rising costs. With these increases, the company’s margins will allow it to withstand economic headwinds. The company is facing a slowdown in the construction sector as interest rates rise and investment appetite declines. New-home building approvals have fallen by 7.7% in June while higher-density building approvals have dropped by 21%. Boral expects to deliver underlying earnings of between $270 million–300 million for FY24, assuming no major shifts in demand or prices — both are big assumptions in today’s market. Regardless of the uncertainty, it’s clear that Boral is in a healthy position. More than just growth Uncertain times have made investors hunt for businesses offering more than just growth. With the stock market starting to lose pace, maybe it’s time to change tactics. Smart investors are focusing on quality stocks that can provide safety and pay dividends. But only buying the dividend income earners could be a fruitless move beyond the short term. That’s why our investing expert and Editorial Director, Greg Canavan, has spent his time finding the smart move. He calls it the Royal Dividend Portfolio, and it’s the sweet spot between growth and dividends. If you think you’re overexposed in uncertain times or simply too defensive with cash and bonds, you may want to consider a different strategy. Click here to learn more about what that looks like. Regards, Charles Ormond, For The Daily Reckoning Australia The post Boral [ASX:BLD] Shares Up 8.1% after Beating Profit Expectations appeared first on Daily Reckoning Australia. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [Exclusive Report: Master Uncertain Markets]( In the world of investing, uncertain markets can be downright terrifying. The fear of losing your hard-earned money can keep you up at night, and the anxiety of not knowing what tomorrow holds can be overwhelming. But what if you could take control of this uncertainty and turn it to your advantage? What if you could not only survive but actually profit from market volatility? [Go HERE to see the Potential Investing Opportunity]( By clicking link you are subscribing to The Bullish Traders Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( [Boral [ASX:BLD] Shares Up 8.1% after Beating Profit Expectations]( Australia’s largest building and construction materials supplier Boral [ASX:BLD] has returned to its former glory with significant gains across most metrics in a challenging economic climate. Boral also told shareholders it will continue raising the price of cement, gravel, and asphalt in the new financial year as soaring interest rates push down the construction of new homes. Shares of the company were up by 8.12%, trading at $4.72 per share this afternoon, as the results understandably enthused investors. Boral has seen its share price rise by 63.28% in the past 12 months, outperforming the sector by almost 50% this year. Source: TradingView Boral’s FY23 results Boral beat most expectations and guidance this year with a strong earnings report today. The company’s net revenue rose 17% to $3.5 billion in the year to 30 June, while earnings jumped 38% to $454.4 million. Operating cash flow lifted 65.5% to $358.7 million. However, Boral’s statutory net profit after tax came in at $148.1 million for the 2023 financial year, down from $150 million in the previous year. This also included a post-tax income of $977.6 million from the sale of its US business, Eco Material Technologies. In other disappointing news for shareholders, the company will also not pay dividends this year. Boral CEO Vik Bansal said he expects cost pressures to linger for the next 12–18 months, which the company will pass on to its customers. However, he signalled that the increases wouldn’t be as sharp as last financial year. ‘There will be price increases because cost will increase. ‘I’m not saying the price is going to remain steady. All I’m saying is the rate of increase will slow down.’ Bansal said he was bullish about starting the new financial year and boasted about a solid project pipeline from the second half of the year onwards. About today’s results, he commented: ‘I am pleased to see Boral deliver a set of full-year results that show clear improvement across the entire business and point to the opportunities that remain ahead. We have seen volume growth across all our products, coupled with a disciplined approach to price, cost, and cash.’ Boral is a major supplier of construction materials in Australia. It operates more than 300 sites nationwide, making concrete, cement, quarrying stone, recycling construction waste, and processing asphalt and bitumen. Outlook for Boral Today’s results give shareholders and investors a good peek into a company that has successfully turned around many parts of the company. With the rising costs of inputs, the company implemented ‘long overdue’ price increases across all its products, shown here: Source: Boral Some may blame the company for sharp raises under the pretext for inflation but as the cost figures indicate, these were in line with rising costs. With these increases, the company’s margins will allow it to withstand economic headwinds. The company is facing a slowdown in the construction sector as interest rates rise and investment appetite declines. New-home building approvals have fallen by 7.7% in June while higher-density building approvals have dropped by 21%. Boral expects to deliver underlying earnings of between $270 million–300 million for FY24, assuming no major shifts in demand or prices — both are big assumptions in today’s market. Regardless of the uncertainty, it’s clear that Boral is in a healthy position. More than just growth Uncertain times have made investors hunt for businesses offering more than just growth. With the stock market starting to lose pace, maybe it’s time to change tactics. Smart investors are focusing on quality stocks that can provide safety and pay dividends. But only buying the dividend income earners could be a fruitless move beyond the short term. That’s why our investing expert and Editorial Director, Greg Canavan, has spent his time finding the smart move. He calls it the Royal Dividend Portfolio, and it’s the sweet spot between growth and dividends. If you think you’re overexposed in uncertain times or simply too defensive with cash and bonds, you may want to consider a different strategy. Click here to learn more about what that looks like. Regards, Charles Ormond, For The Daily Reckoning Australia The post Boral [ASX:BLD] Shares Up 8.1% after Beating Profit Expectations appeared first on Daily Reckoning Australia. [Continue Reading...]( [Boral [ASX:BLD] Shares Up 8.1% after Beating Profit Expectations]( And, in case you missed it: - [Best Social Trading Platforms]( - [Best Books on Options Trading]( - [Money.net Review – Should You Use This Platform?]( - [The Stochastic Oscillator Blueprint: A Step-by-Step Guide To Smarter Trading]( - [Hot Stock: Wall Street’s Green Open After Inflation Report]( - FREE OR LOW COST INVESTING RESOURCES - [i]( [i]( [i]( [i]( Sponsored [Explosive Sector Alert: Profit from The Inflationary Market]( As the current inflationary period propels various sectors, one stands out, ready to take off in a bull market – and history shows that this is a recurring trend. If you're seeking lucrative investment opportunities in the present market conditions, we invite you to explore our latest research report. [Go HERE to see the Potential Investing Opportunity]( By clicking this link you are subscribing to The Wealthiest Investor News’s Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( - CLICK THE IMAGE BELOW FOR MORE INFORMATION - [i]( Good Investing! T. D. Thompson Founder & CEO [ProfitableInvestingTips.com]() ProfitableInvestingTips.com is an informational website for men and women who want to discover investing and trading products and strategies to educate themselves about the risks and benefits of investing and investing-related products. DISCLAIMER: Use of this Publisher's email, website and content, is subject to the Privacy Policy and Terms of Use published on Publisher's Website. Content marked as "sponsored" may be third party advertisements and are not endorsed or warranted by our staff or company. The content in our emails is for informational or entertainment use, and is not a substitute for professional advice. Always check with a qualified professional regarding investing and trading guidance. Be sure to do your own careful research before taking action based on anything you find in this content. If you no longer wish to receive our emails, click the link below: [Unsubscribe]( Net Wealth Consultants 6614 La Mora Drive Houston, Texas 77083 United States (888) 983-9123