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These 2 Stocks Recently Reported Growth In Their Latest Earnings

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

We’ve come to 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 growth? Let’s look at two of them:

1. In the middle of May, SIA Engineering Company Ltd (SGX: S59) released its fourth quarter and full year results for its fiscal year ended 31 March 2017 (FY2017).

As a quick background, SIA Engineering specialises in providing aircraft maintenance, repair, and overhaul (MRO) services. The company, which is one of the subsidiaries of Singapore Airlines Ltd (SGX: C6L), has over 80 international airlines in its customer list.

In the fourth quarter of FY2017, SIA Engineering’s revenue inched up by 0.4% year-on-year to S$295.4 million. Meanwhile, net profit attributable to shareholders climbed 10.9% to S$45.9 million. The company’s bottom-line was driven higher by growth in share of profits from associates and joint-ventures.

SIA Engineering also raised its dividend for FY2017 from S$0.14 per share in FY2016 to S$0.18 per share. The company ended its fiscal year with a strong balance sheet that had S$601.7 million in cash and equivalents and total borrowings of just S$25.9 million.

In its earnings release, SIA Engineering commented that it is facing challenges in its business due to “excess capacity and aggressive pricing,” as well as “global uncertainties.” But, the company still thinks that there are opportunities for growth. As examples, SIA Engineering cited its recent partnerships with aircraft parts manufacturer Moog Incorporated, and 3D printing company, Stratasys.

2. Yoma Strategic Holdings Ltd (SGX: Z59) released its fourth quarter and full year earnings for its fiscal year ended 31 March 2017 (FY16/17) just last week.

During the fourth quarter, Yoma Strategic saw its revenue climb 17.6% year-on-year. Its bottom-line performance was much stronger, as net profit attributable to shareholders surged 170.9%.

Yoma Strategic is a conglomerate that focuses on Myanmar. It has business interests in a wide variety of sectors, such as real estate development, agriculture, tourism, vehicle distribution, and even food & beverage retail.

In the earnings release, Yoma Strategic’s chief executive officer, Melvyn Pun, shared his thoughts on the company’s performance during the year and the outlook ahead:

“We are pleased to report a solid set of results for the financial year during this year of transition. Our journey of business diversification has driven our non-real estate revenue meaningfully higher, and we are pleased to maintain our profitability while reducing the reliance on our higher margin real estate businesses.

Looking forward, our balanced mix of businesses and the strong foundation that we have built should propel our growth in the years to come.”

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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.