HMC Capital's (ASX:HMC) fiscal first-half results earnings and revenue were strong, likely to satisfy current shareholders, but potential investors may require further proof that the growth initiatives are driving sustainable earnings, according to a Tuesday note by Jarden Research.
The company reported Monday that its earnings per diluted share in the fiscal first half rose to AU$0.426, from AU$0.051 per diluted share a year earlier and in line with Jarden's forecasts.
Analysts polled by FactSet were expecting EPS of AU$0.36.
Jarden believes that higher fund management fees and lower taxes offset reduced investment income and higher overheads.
Revenue for the six months ended Dec. 31, 2024, was AU$127.3 million, up from AU$40.2 million in the same period a year earlier. Analysts surveyed by FactSet expected sales of AU$128 million.
Jarden Research has an underweight rating on HMC and a price target of AU$9.65.
Shares of the firm fell 4% at market close.
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