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These 2 Companies Delivered Mixed Results For The First Quarter Of 2017

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

We’re nearing the end of the earnings season!

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

1. Genting Singapore PLC (SGX: G13) reported its 2017 first quarter earnings two weeks ago. The company is the owner and operator of a tourism landmark in Singapore, Resorts World Sentosa.

In the first quarter of 2017, the company enjoyed a huge jump in profit attributable to shareholders from S$10.8 million a year ago to S$181.1 million. This happened despite a 4% drop in revenue to S$586.6 million. Lower impairment of receivables had been a big reason for Genting Singapore’s surge in profit.

The company also continued to produce strong free cash flow and managed to improve its balance sheet by growing its net cash position.

Looking ahead, Genting Singapore has plans to bid for a gaming license in Japan. The country had passed a law in late 2016 to legalise casinos.

2. ComfortDelgro Corporation Ltd (SGX: C52) also released its 2017 first quarter earnings two weeks ago. As a quick introduction, it is one of the largest land transport companies in the world with its fleet of over 44,700 vehicles.

In the first quarter of 2017, ComfortDelGro experienced a 2.4% year-on-year decline in revenue to S$972.0 million. It attributed negative currency swings as a reason for the lower revenue – in fact, ComfortDelGro said that its revenue would have been slightly higher compared to 2016’s first quarter if not for the currency impact.

Free cash flow for the reporting quarter was also down, and the company’s balance sheet weakened. But in any case, ComfortDelGro reported a 12.4% year-on-year increase in profit attributable to shareholders to S$82.5 million.

Looking ahead, ComfortDelGro expects revenue declines in most of seven business segments. Only two – Public Transport Services and Driving Centre – are expected to grow or maintain their revenues.

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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.