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3 Things Investors Should Know About ComfortDelGro Corporation Ltd’s Latest Earnings

ComfortDelgro Corporation Ltd (SGX: C52) is one of the largest land transport companies in the world with its fleet of over 44,700 vehicles.

Two weeks ago, ComfortDelGro released its 2017 first quarter earnings. Let’s look at three useful pieces of information investors may want to know from the announcement:

1. The overall result

The table below shows some of the important numbers from ComfortDelGro’s income statement for the first quarters of 2017 and 2016:


Source: ComfortDelGro 2017 first quarter earnings release

We can see that both revenue and operating profit were down for the company. But, net profit was up by 12.4% mainly due to an increase in income from investments.

2. Segmental revenue and operating profit performance

Here’s a table showing the year-on-year changes in revenue and operating profit for each of ComfortDelGro’s business segments in the first quarter of 2017:


Source: ComfortDelGro 2017 first quarter earnings release

There are altogether seven different business segments in ComfortDelGro. In the first quarter of 2017, other than the Public Transport and Driving Centre segments, the rest saw their revenues decline compared to the same period a year ago.

Meanwhile, all seven segments reported flat or lower operating profit in the reporting quarter. The first quarter of 2017 was quite clearly a tough time for ComfortDelGro despite its bottom-line growth.

3. What lies ahead

As investors, we rely on many tools, including management’s forecasts, to help us gain insight on what to expect for the near- to long-term performance of our investments’ businesses.

With regard to ComfortDelGro, this is what the company said about its future in its earnings release:


Source: ComfortDelGro 2017 first quarter earnings presentation

It’s obvious that ComfortDelGro’s revenue outlook for 2017 is rather bleak, with all segments (except for Public Transport Services and Driving Centre) expected to see their top-lines decline.

As such, investors may want to pay attention to how well ComfortDelGro can manage its costs while facing such a challenging environment.

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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.