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Dixons Carphone: 2017/2018 guidance cut, but shares still up

(CercleFinance.com) - Shares in Britain's Dixons Carphone were rising by up to 6%, despite the electronics retailer cutting its full-year earnings forecast on Wednesday.

Dixons Carphone said headline pretax profit for full-year 2017/2018 was expected to be in a range of 360 million pounds to 400 million pounds, down from 360-440 million pounds targeted previously.

For the six months to end-October, the group reported headline pretax profit of just 61 million pounds, compared to 154 million pounds a year ago, while analysts were expecting 63 million pounds.

"Today's cut to guidance and slight miss could bring some disappointment although any negative share price reaction could be tempered by the significant recent fall," Liberum analysts commented.

As a reminder, the shares have fallen 50% since the beginning of the year.

However, Dixons Carphone also said that its free cash flow improved to 169 million pounds in the first six months of its fiscal year, compared to 64 million pounds a year ago, helped by a reduction in capex.

On top of that, the firm said the start of peak Christmas season has "gone well," with record sales, notably thanks to the later launch of the iPhone X.

As a result, its shares were trading 6.3% higher at 178 pence.

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