Shares in insurance giant AUB Group Ltd (ASX: AUB) are lifting from the open today and are currently 0.30% higher, trading at $23.54 apiece.
AUB shares are on the move today as investors respond to a company announcement advising of an upward revision to its FY22 guidance.
Following a period of positive trading momentum already in FY22, the company reckons it will pull in a profit slightly ahead of its previous results. Here are the details.
What did AUB announce?
After factoring in expected 1H FY22 growth of $4.8 million to $5.8 million, underscored by $31 million to $32 million in 1H FY22 NZ tech investment earnings, the company has bumped its profit guidance for FY22.
Today’s release also notes that the first half underlying net profit after tax (UNPAT) is anticipated to be in the range of $29.5 million to $30.5 million, higher than originally expected.
For comparison, UNPAT for 1H FY21 was $26.2 million, adjusted for profits from the Altius sale and JobKeeper receipts.
AUB had previously advised it expects earnings of $70 million to $73 million at the bottom line, announced to the market in August 2021.
This was on a solid backdrop of around 26% growth in UNPAT for FY21 to $67 million, allowing a fully franked dividend of 39 cents per share.
The bolus of growth in FY21 was underscored by organic growth primarily in its Australian broking division, as retail investors piled into equity markets amid statewide lockdowns.
Alas, the company says these positive earnings trends are set to continue this financial year. AUB intends to announce its half year results on 22 February 2022, according to the announcement.
AUB share price summary
The AUB share price has outperformed these last 12 months, gaining 38% in that time.
Over the past year to date shares have climbed 45%, however are down 1% in the red this last month.
The post Earnings Upgrade: What’s got the AUB (ASX:AUB) share price spiking today? appeared first on The Motley Fool Australia.
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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Austbrokers Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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