Ashtead Share Discussion Threads

[ianwwwhite] 05/3/2019 15:40

bracke

lol!

Winnie? Is he the other one that doesn't like the 'you know what'?

[bracke] 05/3/2019 15:36

ian

"... have you been talking to Eeyore? :-)"
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Winnie wasn't very happy either!



I will continue to monitor the share price

[ianwwwhite] 05/3/2019 15:28

Hi bracke,

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Construction spending in December was lower than expected and AHT has a chunky amount of debt. Add in thoughts of a slowing US economy and the cyclical nature of AHT's market and you can understand why the lacklustre response to the results.
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.... have you been talking to Eeyore? :-)

We've seen this happen before, a fall on results day and subsequent recovery over the following days, so I'm still in for the long haul, until the story changes. The AHT management seem pretty confident in their outlook in today's webcast.

Given that URI fell yesterday together with the DOW on trade deal worries, and that the AHT price was marked down from the off, I am not at all sure that today's price action was based on the AHT results as you suggest.

In any event, good luck with Mater's sale, I'm sure she will sleep easier once the money is back in her piggy bank!

[bracke] 05/3/2019 14:50

Good day ian

I am not keen on holding AHT as long term at this time.

I agree the results were good but the market looks ahead and is wary.

Construction spending in December was lower than expected and AHT has a chunky amount of debt. Add in thoughts of a slowing US economy and the cyclical nature of AHT's market and you can understand why the lack lustre response to the results.

It's always difficult to gauge a market turn but I would prefer to err on the safe side. Perhaps an agreement between US and China concerning tariffs, or at least a tweet by Mr Trump saying there is may take the share price up to a Mater exit level.

[ianwwwhite] 05/3/2019 14:10

Good afternoon bracke,

Looks like Maters short term punt is turning into a long term hold? :-)

Keep the faith, time is on her side, and the final dividend payable in Sept, (ex div Aug) will probably be an increase over last year (27.5p), under AHT's progressive and sustainable dividend policy..

[ianwwwhite] 05/3/2019 14:09

Good afternoon 2flatpack

Welcome back, we were beginning to worry about you :-)

Personally I think the AHT results as usual were outstanding, and this morning's retrace had more to do with the fall in the Dow yesterday, and in particular followed URI down from the off. URI had fallen 2.36% to 132.49 at the close last night.

I think things may begin to look a bit brighter over the next few days (IMHO).
.

[2flatpack] 05/3/2019 13:45

Afternoon all
With the US markets flat it will be interesting to see how URI react, they often do better from our results than we do.
Good results .
Thanks Jeff. and the team.
I guess the Final will be Jeff's swan song, which will be loud and sweet.
CHeers

[bracke] 05/3/2019 11:49

No spike to the upside, No return to the sunny uplands.

Mater will be disappointed!

Looking on the bright side........ the lower gaps have been filled.

[hatfullofsky] 05/3/2019 08:35

Great results, debt always high in capital intensive businesses. Growth is very good. If this dips over the next couple of trading sessions I'll be loading up.

[fenners66] 05/3/2019 08:35

Morning Dave

[bigbigdave] 05/3/2019 08:33

Just your usual results day sell off imo, have been adding.

[gerrym two] 05/3/2019 08:31

Great results. Debt is very much secondary when earning cash like this....consistently!!

[discodave4] 05/3/2019 08:26

Good Morning fenners.

[fenners66] 05/3/2019 08:21

They make a link to the debt and share buyback themselves - and no some don't like it !

[discodave4] 05/3/2019 08:07

Results in line, 24% LFL increase in pre tax profit, slightly beating some analysts forecasts.Some won't like the debt! :)

[discodave4] 04/3/2019 21:12

From Sharecast:Among the corporate names scheduled to update markets is US-exposed Ashtead, which is due to publish its third quarter financials. Steve Woolf at Numis estimates the equipment rental company will post a 22% jump in pre-tax profits to reach £250m, alongside a "modest" improvement in operating (EBITDA) margins, although the latter will be limited by the company's continued expansion and investmens in infrastructure. Significantly, Woolf did not anticipate that the company would flag any change in trading conditions in the US construction space, highlighting how the company's business was now more cyclical than during the previous downturn. Long-term infrastructure now accounted for roughly a third of its end-market exposure, up from about 15% at the peak of the last cycle. "We remain positive on the shares, which we believe look oversold."

[connorcampbell] 04/3/2019 13:10

Will Ashtead Group get a (fork)lift following Tuesday’s third quarter trading statement?

While it might have come during a tough December, there was a lot to recommend in the month’s half year results. Revenue rose 19% to £2.25 billion, with a 25% surge in pre-tax profit to £610 million, and a stonking 42% jump in underlying earnings to 98.8p per share.

If Ashtead is to continue its 2019 recovery, then Tuesday’s Q3 results need to maintain that double-digit growth posted in the first and second quarters. The performance of its US division, which makes up something like 85% of its total revenue, will be key, with the company susceptible to any stateside economic slowdown.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here:

[connorcampbell] 04/3/2019 13:09

Will Ashtead Group get a (fork)lift following Tuesday’s third quarter trading statement?

While it might have come during a tough December, there was a lot to recommend in the month’s half year results. Revenue rose 19% to £2.25 billion, with a 25% surge in pre-tax profit to £610 million, and a stonking 42% jump in underlying earnings to 98.8p per share.

If Ashtead is to continue its 2019 recovery, then Tuesday’s Q3 results need to maintain that double-digit growth posted in the first and second quarters. The performance of its US division, which makes up something like 85% of its total revenue, will be key, with the company susceptible to any stateside economic slowdown.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: hxxps://spreadex.com/?tid=387817

[bracke] 04/3/2019 12:44

£:$ falling since Thursday has assisted the 'cause'.

Good results tomorrow could give another gap to the upside.......but beware a Brexit Deal which is very likely to send the £:$ up and the share price down.

[bracke] 04/3/2019 10:37

It's filled the 'down' gaps but created 'up' gaps.

[ianwwwhite] 04/3/2019 10:01

Bigbigdave

Thanks for The Times link.

An interesting read, although I would question the 'Surrey based' and 'American Rentals' references. Nevertheless as they say any publicity is good publicity....

[discodave4] 03/3/2019 19:19

No problem Ian.

[bigbigdave] 03/3/2019 16:15

Ashtead builds on booming America

[ianwwwhite] 03/3/2019 16:02

Great link DD, thanks for posting

[discodave4] 03/3/2019 14:29

Q3 Tuesday will hopefully reaffirm above expectations for the year.From AJ Bell, Ashtead results "could really cause a fuss", whatever that means!. From 4m35s onwards: HTTPS://www.youinvest.co.uk/video/breaking-mould-ashtead