The Motley Fool

2 Companies That Recently Announced Growth In Their Latest Results

We are reaching the tail-end of the earnings season.

Given that many companies have already reported their results, it might be useful to categorise them into three buckets of positive, negative and mixed.

In this article, we will look at two companies that have recently reported mixed results.

Singapore Post Limited (SGX: S08) is the first company that we will look at in this article.

As a quick introduction, SingPost is a mail and logistics company, organised into three major segments of Mail/Postal, Logistics, and Retail & eCommerce.

For the fourth quarter ended 31 March 2018, sales revenue improved 13.5% year-on-year to S$367.5 million. Quarterly operating profit improved from a loss of S$66.5 million last year to S$40.1 million. Similarly, net profit turned from a loss of S$66.2 million to a profit of S$23.9 million. Consequently, earnings per share (EPS) turned positive from a loss of 3.03 cents last year to 0.9 cents this quarter. Year-to-date, SingPost generated free cash flow of S$136.1 million, up from S$0.3 million last year. It also proposed a final dividend of 2.0 cent per ordinary share, bringing total dividend per share for FY17/18 to 3.5 cents.

Paul Coutts, the chief executive of SingPost, said:

“SingPost is well positioned to benefit from the strong growth in global eCommerce and last-mile deliveries as we progress to the next phase of our strategy.

We continue to execute on our transformation and build on our partnership with Alibaba in eCommerce. We are integrating and scaling our eCommerce businesses in the US and Southeast Asia, as well as the rest of our overseas operations, and optimising the cost structure of the SingPost Group.”

Singapore Technologies Engineering Ltd (SGX: S63), or STE, is the second company that we will look at in this article.

As a quick introduction, STE is a conglomerate with business interest in various sectors, namely, Aerospace, Electronics, Land Systems, Marine and others.

For the quarter ended 31 March 2018, STE reported that revenue grew by 9.0% year-on-year to S$1.6 billion. Profit attributable to shareholders for the quarter grew by 12.8% year-on-year to S$117.7 million. EPS was up by 17.8% year-on-year to 3.78 cents. The growth in profit was achieved in all four segments.

The engineering conglomerate’s order book stood at S$13.4 billion at the end of the quarter. As of 31 March 2018, its total debt stood at S$1.04 billion while its cash and investments stood at S$1.64 billion, giving it a net cash position of S$0.60 billion.

STE’s president and chief executive, Vincent Chong, commented:

“We started the year with healthy revenue growth and net profit. We also secured numerous contracts including Smart City projects in the past quarter. With a strong order book, the Group remains on track for steady growth,”

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.  

The Motley Fool’s purpose is to help the world invest, better. Like us on Facebook  to keep up-to-date with our latest news and articles.

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.