Renishaw Share Discussion Threads

[quickmind] 23/4/2013 09:06

"22 April 2013: Renishaw plc will be releasing an update on trading in the third quarter in an interim management statement to be released on 3 May 2013."

They're bringing IMS forward (was due on 9 May; the co's web still says so). Presumably, this is an attempt to stem further fall in share price. Don't understand why they're not getting out the good news out rignt away.

[apad] 19/4/2013 08:13

It is j, but I estimate RSW's fall to be about 20% more than its peers since the change in sector sentiment in March. It's possible that at a PER of 16 (estimated at half year performance) it is starting to look tempting, but I suspect that the current sector trend has a way to go.
RSW largely ignores the financial press, so tends to be quiet in between news.

68 jobs on offer.
apad

[9degrees] 19/4/2013 08:06

Yes Sxs down 12% so bought in here at 15.73 excellent opportunity to buy . Cracking company

[jamielein] 19/4/2013 07:35

I think today's fall is due to Spectris' IMS (SXS)

[deadly] 16/4/2013 09:33

Getting interesting here to buy

[apad] 06/3/2013 17:27

Jesu!

apad

[robinnicolson] 06/3/2013 10:50

An interesting profile of Sir David McMurtry:

[broadwood] 06/3/2013 08:21

Ex div today.

[broadwood] 25/2/2013 15:21

Looks like we're back on the bike again - after a re-fuelling stop.

[redartbmud] 03/2/2013 16:11

APAD

The perceived high rating doesn't worry me. It is a world class business and I would expect to see a premium rating.

red

[apad] 02/2/2013 10:23

red..
I'd written healthcare off before the increase in orders from the Far East, I'm now more interested.

FWIW my forecast is 109p eps and my snapshot PER is 18 at the moment, which I don't view as excessive.

From IC, below.

Slowdown at Renishaw
A stunning start to the year meant an impressive first half for precision engineer Renishaw (RSW) – but the second quarter was less buoyant, while a notoriously short order book means management has little idea what will happen in a month's time. Still, even it admits second-half sales are unlikely to be any better than last year. That's not good enough, and these highly-rated shares have been rightly punished.

China is the culprit. Renishaw spent the first three months filling big orders from consumer electronics giants there, so profits doubled to more than £28m on sales that rose 36 per cent. But it's lumpy work and there was no repeat in the second quarter, which explains why adjusted pre-tax profit fell to £15m during the three months on sales that were only fractionally higher. With sales falling in both Germany and the US, prospects largely depend on the Far East. That region generates 45 per cent of sales and well over half of that comes from China. Clearly, there are powerful structural drivers at play and the Chinese are desperate to improve output and the accuracy of production methods. Renishaw is already getting work from manufacturers gearing up for the next generation of TVs. Outside of Europe, more car plants requiring Renishaw's kit are being built, too, and modern aircraft engines use its measurement tools.

Numis expects full-year pre-tax profit of £96m, giving EPS of 105.5p (95.6p in 2012).

D Despite the negative reaction to these results, Renishaw's shares still trade on 18 times forecast earnings. That's high enough given the lack of visibility and current expectation that last year's record fourth quarter won't be beaten.

Hold

[redartbmud] 01/2/2013 12:17

APAD

Not so sure about healthcare. Turnover small and volume increase limited so I don't see them eradicating losses. The FD didn't answer the question when it was put directly to him. McMurtry operates on a long timeframe so they will be "ongoing". Not too worried though as the rest of the business can carry them and there may be a spin off on R&D for other projects - perhaps?

Sp looks to have found it's level for now.

red

[apad] 01/2/2013 09:57

What I got from the presentation:
impressed by the new encoders in the product range.
healthcare orders from the East look encouraging - maybe there is a future there after all.

apad

[apad] 01/2/2013 08:38

Just seen it on the Website.
apad

[apad] 01/2/2013 08:21

Anything new in the Q&A in the video?
apad

[broadwood] 31/1/2013 08:08

- Apple never confirms who its suppliers are, but one is plainly Renishaw, the Gloucestershire company that gets about 28 per cent of its revenues from the Far East - mainly China, where iPhones and other smartphones and tablets are made using its precision-measuring tools. The company´s halfway figures yesterday made it clear that, although the first half was a record, the second half would show no further improvement.

Furthermore, the first-half performance was swollen by a glut of orders from China, linked to production of those tablets and smartphones. Furthermore, orders in the second half will have to contend with a strong performance in the second half of last time, while costs will be up because of increased investment. Even so, "if you are prepared to take a long view and disregard further price gyrations, they look like good value," The Times´s Tempus column says

[rogerrail] 30/1/2013 16:13

Pearl/Redart
Generally agree with your posts above. If you look back at my previous posts I have promoted this share as a great growth prospect through the lows of the recent euro crisis, but I did expect the growth in China to continue to outweigh any weakness in established markets. I have no doubt RSW will continue to grow sales there as well as the other emerging economies which are not quite as advanced as China. I agree this is a short term blip due to weak markets in Europe. Nevertheless this has had a great run up to the current level and it would be very optimistic to expect it will continue on the same upward trend. Nothing is a certainty and much depends on the recovery in the US and hopefully Europe also.

[pearlfisher] 30/1/2013 12:31

Overdid it on my estimate for second half profit - based on comments today looks likely to be in line with original broker forecast at around 76M after tax, i.e.10% up on last year. Interesting how it has transformed through the recession however:
2008 results - Sales 201M, Operating Profit 37M, Profit after tax 33M
This year (my estimate) - Sales 358M, Operating Profit 89M, Profit after tax 76M
Change - Sales +78%, Operating Profit +140%, Profit after tax +130%

[pearlfisher] 30/1/2013 11:42

Roger, I agree with you on the share price treading water for a while. At the current PE I think it is fairly valued where it is at the moment - may go up or down a bit but will need some good news to move the price substantially up. I'm holding for where I see the company going next year and beyond rather than the current year results.

[redartbmud] 30/1/2013 11:30

Roger

I believe that it is necessary to understand the culture of the business.
As pearl says, RSW believes in long term investment as the key to the future. it stays ahead of the game by spending heavily on R&D, staff, premises. Short term blips are inevitable, and often outside of the control of the company.
It deserves a premium rating, so sometimes it is hard to deliver against a market expectation of analysts that are still wet behind the ears, if not still in nappies. They also have a very short term perspective, by and large.

Still think a new FD essential in near future, and have thought so for a couple of years.

red

[rogerrail] 30/1/2013 11:13

Unfortuantely solid results are not good enough to justify rating, considering the static second half and the prospects for the next 6 months. share price at best likeley to tread water, IMO, probably until the next trading udpate.

[pearlfisher] 30/1/2013 10:50

Red, yes, you'd think they would give their FD a bit of coaching. Modern communication methods are unforgiving mediums. Ben Taylor came across well I thought. They are clearly investing heavily in new facilities, products and people which suggests their confidence for the future. Pleased to see that and the high concentration of business in the Far East and US - likely to be the two regions leading us out of recession. There's a lot of money on corporate balance sheets waiting to be invested when confidence in the global economy returns.