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Venture Corporation Ltd’s Latest Earnings: Revenue and Profits Soar

Venture Corporation Ltd (SGX: V03) reported in its second-quarter earnings report on Friday. The reporting period was from 1 April 2017 to 30 June 2017.

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 also catch up with the previous quarter’s earnings here .

Financial highlights

The following’s a quick take its financial figures for the second-quarter:

1. Revenue was up 48.3% year over year to $1.01 billion.

2. Net profit for the period was $69.8 million, up 61% from a year ago.

3. Earnings per share (EPS) was 24.4 cents, up from 15.6 cents in 2016’s second-quarter.

4. Cash flow from operations $102.6 million while capital expenditure was $7 million. Venture Corporation generated free cash flow of $96.5 million for the reporting quarter.  

5. As of 30 June 2017, Venture Corporation had around $417.3 million in cash and equivalents and around $75.2 million in borrowings. This is a slight decrease from the end of 2016 when Venture Corporation had around $474.7 million in cash and equivalents and $92.6 million in borrowings.

Revenue growth accelerated compared to last quarter, while profits soared. The electronics services provider also generated strong free cash flow after posting a negative figure in the previous quarter. Venture Corporation maintained a strong balance sheet.

Operational Highlights

Venture Corporation said that revenue benefited from its diverse customer base and strong execution of customer programmes launched in the first-quarter. The following outlook was also shared as part of its earnings release:

“Venture continues to make progress across its strategic and operational initiatives. Through its unique TCS management practice, Venture has deepened its alliances and partnerships for value creation with leaders in technology ecosystems of interests.

It has also enabled the Group to forge new collaborative alliances culminating in new programmes and to capture additional opportunities across its diversified customer base. Venture has also been able to seize new opportunities in several fast-growing adjacent ecosystems.

The dynamics of the business environment such as geopolitical tensions and customers’ consolidations may introduce some degree of uncertainty. However Venture remains fully committed to provide strong value creation for the success of its business alliances and partnerships.

This is accomplished through growing a critical mass of high quality talents in management, engineering and other professionals. Venture will harness the collective strength and synergy of its human capital to relentlessly create compelling differentiation, advancing Venture’s position as a leading global provider of technology solutions, products and services.”

Foolish summary

At its closing price on Friday of $13.85, Venture Corporation traded at 17.8 times trailing earnings with projected dividend yield of 3.6%.

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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.