The Wesfarmers Ltd (ASX: WES) share price is lifting after a rocky start to Friday’s session following the release of the S&P/ASX 200 Index (ASX: XJO) giantâs full-year earnings.
Thatâs despite brokersâ seemingly positive response to its financial year 2022 (FY22) performance.
The Wesfarmers share price opened 1.2% higher at $48.20 this morning before plunging to a low of $46.70, marking a 2% tumble.
It’s since recovered to trade 1.66% higher at $48.43 at the time of writing.
Letâs take a look at how brokers are responding to the retail companyâs FY22 earnings.
Wesfarmers share price overcomes rocky start on Friday
The Wesfarmers share price is lifting after a rough start to the session. Its wobbly performance comes on the back of news the company’s revenue surged in FY22 while its profits sunk.
As The Motley Fool Australia reported earlier, the conglomerate behind Bunnings, Kmart, and Officeworks posted a $1 fully franked final dividend.
E&P analyst Phil Kimber dubbed the results “positive”, The Australian reports, saying the company’s $3.6 billion of earnings before interest and tax (EBIT) surpassed the $3.4 billion consensus estimate.
The expert was quoted as predicting expert consensus upgrades of between 3% and 5% following the result’s release.
Meanwhile, Barrenjoeyâs Tom Keirath reportedly labelled the companyâs earnings “strong” and its FY23 outlook “bullish“.
Wesfarmers said the first seven weeks of FY23 had brought robust retail trading conditions. It has also seen strong sales growth in some of its key retail business over the period.
On top of its results, it revealed its found indications of historical payroll errors in its recently acquired API business. The company said:
API has commenced work to confirm any payment errors and identify affected team members in order to implement a remediation program as soon as possible.
The cost of remediation is not expected to impact reported earnings for the health division.
The post Wesfarmers share price lifts as earnings beat brokersâ consensus appeared first on The Motley Fool Australia.
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More reading
- Wesfarmers share price in focus as profit slips to $2.35b
- Earnings preview: Here are the ASX shares reporting today
- 5 things to watch on the ASX 200 on Friday
- Wesfarmers share price edges higher ahead of Thursday’s results
- Here’s what happened to the Wesfarmers share price last time the company reported
Motley Fool contributor Brooke Cooper has no position 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 positions in and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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