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These 2 Companies Recently Reported Growth In Their Latest Quarterly Earnings

Photo credit: Rafael Matsunaga. Licence: http://creativecommons.org/licenses/by/2.0/

We’re back in the earnings season again!

As is common with every earnings season, there will be some companies posting growth, some companies posting flat numbers, and some companies experiencing declines. So, which are the companies that have recently reported growth in their latest results? Let’s look at two of them:

1. Frasers Centrepoint Limited (SGX: TQ5) released its results for the quarter ended 31 December 2016 last week. The quarter is the first for the company’s fiscal year ending 31 September 2017 (FY16/17).

As a quick background, Frasers Centrepoint is a real estate company that currently has three strategic business units, namely, Singapore, Australia and Hospitality. It also has an arm handling its international businesses.

The company’s three strategic business units have a number of Singapore-listed real estate investment trusts under them; these REITs include Frasers Hospitality Trust (SGX: ACV), Frasers Centrepoint Trust (SGX: J69U), and Frasers Logistics and Industrial Trust (SGX: BUOU) among others.

During the quarter, Frasers Centrepoint delivered strong improvement in revenue (up 44.7% year-on-year) and earnings per share (up 99%) due to higher contributions from its Singapore strategic business unit and international arm. The former benefitted from profit recognition at its North Park Residences project and the sale of a bungalow at Holland Park.

2. SBS Transit Ltd (SGX: S61) is next in line and the company reported its latest results – for the last quarter of 2016 – last week as well.

SBS Transit is perhaps best known as a provider of public bus and rail services in Singapore. But, it also earns revenue through providing advertising platforms (on its vehicles, for instance) and rental collection. The company is a majority-owned subsidiary of local land transport giant ComfortDelGro Corporation Ltd (SGX: C52).

During its reporting quarter, SBS Transit enjoyed a 12.2% year-on-year increase in revenue and a huge jump in profit from just S$0.4 million a year ago to S$8.2 million. The company also managed to strengthen its balance sheet compared to the end of 2015 and generate positive free cash flow. The company’s performance had been aided by the new Bus Contracting Model that commenced on September 2016.

Looking ahead, SBS Transit expects to see revenue growth in 2017, although it foresees higher costs too.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.