Venture Corporation Ltd’s Latest Earnings: What Investors Should Know   

Venture Corporation Ltd (SGX: 5OI) reported its third quarter earnings report last Friday. The reporting period was for 1 July 2015 to 30 September 2015.

The electronic services manufacturer serves a variety of industries: printing & imaging, networking & communications, retail store solutions & industrial, computer peripherals & data storage and test & measurement / medical & life science / others. The firm primarily serves the Asia Pacific region.

You can read more about the company here and here. You can also catch up with the previous quarter’s earnings here.

Financial highlights

The following’s a quick take on Venture Corporation’s latest financial figures:

  1. Revenue for Venture Corporation was up a strong 15.7%, compared to the same quarter last year. For the third quarter of 2015, quarterly revenue came in at $692.9 million.
  2. Following suit, net profit for the period rose by 12.2% to $40.5 million, compared to the $36.1 million recorded for the third quarter of 2014.
  3. As a result, earnings per share (EPS) rose 11.4% from 13.2 cents per share in the third quarter of 2014 to 14.7 cents in the reporting quarter.   
  4. Cashflow from operations came in at $63.1 million for the third quarter of 2015 with capital expenditure clocking in at $3.1 million. This gave Venture Corporation a positive free cash flow of $60 million for the reporting quarter.
  5. As of 30 September 2015, the company had $378.5 million in cash and equivalents and $157.2 million in borrowings.

Venture Corporation’s quarter looks good. The reporting quarter saw strong growth in both its top-line and bottom-line. The electronics services provider also reported strong free cash flow and strengthened its balance sheet. This is a big improvement compared to the previous quarter which recorded $23.5 million in free cash flow.  

Operational Highlights

Venture Corporation’s topline benefited from market share gain among existing customers, contributions from new customers and favourable exchange rate movement. The management team at Venture Corporation added the following outlook:

Despite challenging operating conditions, the Group’s year-to-date quarterly performance has been commendable. This has been driven by strong management execution on several strategic initiatives.

As the operating conditions are expected to stay challenging, the Group will continue to relentlessly pursue operational excellence, drive impactful innovation and develop new engineering competencies in several domain areas. These differentiating strengths will continue to enable the Group to provide strong support to its existing and new customers.

Foolish summary

At its closing price yesterday of $8.27, Venture Corporation traded at around 15.4 times trailing earnings with a trailing dividend yield of 6%.

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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 Chin Hui Leong doesn’t own shares in any companies mentioned.