Singapore’s stock market closed lower today as the Straits Times Index (SGX: ^STI) slipped by 0.4% to 3,167 points. Within the index’s 30 constituents, there were a lot more shares that lost ground as compared to those that made gains. 18 shares within the index ended the day in the red while 10 had made some headway. It’s possible for share prices of companies to become especially volatile after reporting earnings. With that in mind, let’s take a look at some companies that have been making big moves following the release of their quarterly earnings figures. Combine Will…
Singapore’s stock market closed lower today as the Straits Times Index (SGX: ^STI) slipped by 0.4% to 3,167 points.
Within the index’s 30 constituents, there were a lot more shares that lost ground as compared to those that made gains. 18 shares within the index ended the day in the red while 10 had made some headway.
It’s possible for share prices of companies to become especially volatile after reporting earnings. With that in mind, let’s take a look at some companies that have been making big moves following the release of their quarterly earnings figures.
Combine Will International Holdings (SGX: N0Z) gained 19% to S$0.595. The China-based maker of corporate premiums, toys, and consumer products had released its third quarter earnings last evening.
Interestingly, revenue for the quarter had slipped 2% year-on-year to HK$419m while profits were down 3% to HK$11.5m. Nonetheless, that seemed to please the market judging from its share price action.
Combine Will had experienced great sequential improvements over its results from the second quarter this year, with profits more than doubling.
It commented in its earnings release that it “expects to continue the upward momentum well into Q42013” based on its quality products and services that result in high consumer satisfaction levels.
Medical device maker Biosensors International (SGX: B20) dropped 6% today to S$0.87 after seeing its second quarter profits get slashed by 60% to US$11.3m compared to a year ago. The company had announced its second quarter earnings (for the three months ended 30 September 2013) yesterday evening.
Biosensors had experienced gross margins of 73% for the quarter, down from 80% in the previous year. In addition, there were year-on-year increases of more than 30% for expenses related to sales & marketing; general & administration; and research & development. Those were some of the reasons for the drop in profit.
Biosensors had also dialled back its forecast for revenue growth for the rest of the financial year. In its first quarter earnings, the company had targeted 15% year-on-year revenue growth for the current financial year.
In yesterday’s release, Biosensors now expects total revenue growth to be only “moderately positive” on the back of “overall weak market conditions in the short run.”
Electronics and furniture retailer Courts Asia (SGX: RE2) rounds up the trio with its shares taking a 10.3% haircut to S$0.695.
The company had released its second quarter earnings yesterday evening and saw a 3.3% increase in quarterly revenue to S$223m compared to a year ago. Profits, on the other hand, tumbled by 55% to S$7.2m.
Courts Asia’s profit margins were squeezed for a few reasons. The company’s product mix for the quarter had shifted to more IT products instead of furniture and the latter carries lower margins inherently.
Besides that, the company had faced tightened credit sanctions, leading to lower credit sales; disruption to its JEM store in Singapore after the mall was closed for a few weeks following a ceiling-collapse; and a shorter festive season.
Nonetheless, Terence Donald O’Connor, chief executive of Courts, remains optimistic as he commented: “With Asia’s fast-growing economies and rising middle class, the long term growth drivers for our business are in place.”
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chong Ser Jing doesn’t own shares in any companies mentioned.