Breville Group (ASX:BRG) first-half result shows strong execution and sustained category tailwinds, but an upbeat conference call is likely needed for the stock to see further gains, according to a Tuesday report by the Australian, citing investment and financial services firm Citi.
The company reported Tuesday that its earnings per diluted share in the fiscal first half rose to AU$0.669, from AU$0.582 per diluted share a year earlier.
Citi analyst Sam Teeger pointed out that Breville's full fiscal year guidance of earnings before interest and taxes growth of 5% to 10% "may be slightly underwhelming or conservative," as Visible Alpha estimates suggest 12% growth, factoring in a stronger first half.
However, Breville expects strong fiscal second-half momentum, driven by new products and expansion into China and the Middle East, Teeger said.
Breville's increased US inventory to offset potential tariffs should safeguard fiscal second-half margins, Teeger added.
Shares of the company fell 2% at market close.
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