PostNL: shares jump on revised guidance
(CercleFinance.com) - PostNL shares jumped by more than 6% on Tuesday after the group upped its guidance for 2020, citing "strong" operational performance in the third quarter.
The Dutch postal carrier said it now expects full-year 2020 normalised EBIT to be at least 175 million euros, with the increase in EBIT to translate into an improvement in free cash flow.
In addition, PostNL said it anticipates being able to resume dividend payments over the 2020 fiscal year, to be approved by shareholders at the AGM in April 2021.
PostNL also announced that it has entered into a sale-and-leaseback agreement with Urban Industrial relating to four mail sorting centres in the Netherlands, for which it will receive proceeds of 150 million euros.
"The continued strong operational performance is a clear positive and the improving leverage position and earlier than expected resumption of dividend payments is a positive and we would expect a positive share price reaction", analysts at UBS said.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The Dutch postal carrier said it now expects full-year 2020 normalised EBIT to be at least 175 million euros, with the increase in EBIT to translate into an improvement in free cash flow.
In addition, PostNL said it anticipates being able to resume dividend payments over the 2020 fiscal year, to be approved by shareholders at the AGM in April 2021.
PostNL also announced that it has entered into a sale-and-leaseback agreement with Urban Industrial relating to four mail sorting centres in the Netherlands, for which it will receive proceeds of 150 million euros.
"The continued strong operational performance is a clear positive and the improving leverage position and earlier than expected resumption of dividend payments is a positive and we would expect a positive share price reaction", analysts at UBS said.
Copyright (c) 2020 CercleFinance.com. All rights reserved.