Bodycote (LON:BOY) Issues Earnings Results

Bodycote (LON:BOY) posted its quarterly earnings data on Tuesday. The company reported GBX 18.10 EPS for the quarter, Digital Look Earnings reports. Bodycote had a net margin of 7.55% and a return on equity of 8.58%.

Here are the key takeaways from Bodycote’s conference call:

• Strong first-half performance: Core organic revenue grew 9.6%, led by Aerospace & Defense, industrial gas turbines and a recovery in medical, more than offsetting a 4.4% decline in automotive. Adjusted EPS increased 18.3% to £0.252.
• Group operating margin improved 110 basis points to 16%, supported by the Optimise restructuring program, lower-cost operations and reduced exposure to low-margin non-core activities. Management expects further Optimise benefits and volume leverage in the second half.
• Optimise remains on track, with 29 of 31 planned footprint actions expected to be completed by year-end and at least £15 million of annualized benefits targeted by mid-2027. The company is evaluating a further phase focused mainly on structurally challenged automotive operations, but acknowledged that returns may be less attractive than in the initial phase.
• Full-year guidance was reaffirmed, although second-half growth is expected to moderate because of tougher comparisons and core margins remain subject to variable-pay normalization and new-site investment costs. Capital expenditure is expected near the lower end of the previously guided £80 million–£90 million range, while the company continues its £80 million buyback and selective M&A strategy.

Bodycote Stock Down 1.6%

Shares of Bodycote stock opened at GBX 677.78 on Tuesday. The stock has a market capitalization of £1.15 billion, a price-to-earnings ratio of 21.86, a PEG ratio of 1.44 and a beta of 1.35. The business’s 50 day simple moving average is GBX 714.37 and its 200-day simple moving average is GBX 713.61. The company has a current ratio of 1.15, a quick ratio of 0.74 and a debt-to-equity ratio of 29.80. Bodycote has a twelve month low of GBX 566.50 and a twelve month high of GBX 850.

Wall Street Analyst Weigh In

Separately, Deutsche Bank Aktiengesellschaft upgraded shares of Bodycote to a “buy” rating and upped their target price for the company from GBX 835 to GBX 960 in a research note on Thursday, May 28th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of GBX 850.83.

Bodycote Company Profile

The leading provider of heat treatment and specialist thermal processing services worldwide.

Heat treatment encompasses a variety of techniques and specialist engineering processes which improve the properties of metals and alloys and extend the life of components and is a vital part of any manufacturing process.

Bodycote is uniquely placed via our global network and the experience and knowledge of our people to offer high quality, reliable and cost-effective services to manufacturers whatever their size or market sector.