Spirent Communications Share Discussion Threads

[steeplejack] 20/1/2023 09:12

Ericcson are similarly referencing a tough current climate for companies in the telecoms space in todays full year update.There are broader concerns for the equity market as a whole.Actual results over the next 6 months might temper undue optimism of a soft landing.

[mngf] 20/1/2023 07:30

H2 weighting stuck in there at the end creating risk

[18bt] 16/1/2023 07:38

This share still seems to fly under the radar. c11% EPS growth expected for 2022 YE and in a structural growth sector.

[kalai1] 10/11/2022 17:03

Spirent Communications plc issued a Q3 trading update this morning. The Group is on track to deliver another year of good progress with a record order book and revenue growth of 10% ytd. Expectations for the FY remain unchanged, the balance sheet remains robust with closing cash position of $188m at end September 2022. The company is high quality, valuation remains a little unhelpful with forward PE ratio up near 17x. Share price has been drifting sideways for 2 years and lacks positive momentum accordingly. There is no apparent rush to buy, but the company is high quality with decent growth performance and is certainly worth monitoring for the time being...

...from WealthOracle

hxxps://wealthoracle.co.uk/detailed-result-full/SPT/612

[steeplejack] 10/11/2022 12:44

Good results.......not that it matters in these markets!

[masurenguy] 28/10/2022 10:32

What prompts that suggestion? Are there any rumours or indications to substantiate such speculation?

[antanatar] 28/10/2022 08:40

Takeover in the offing?

[horseyphil] 25/9/2022 08:21

Tipped in The Sunday Times today (behind paywall).

[crazycoops] 14/8/2022 07:52

Tipped by MIDAS this w/e hTTps://www.thisismoney.co.uk/money/investing/article-11108441/MIDAS-SHARE-TIPS-steady-5G-profit-try-Spirent-Communications.html

[18bt] 04/8/2022 07:32

Yes - happy to hold this one. In a growth business in a slow growth world.

[dogwalker] 04/8/2022 07:22

All reads v well & better than hoped : more double digit growth.

[dogwalker] 28/7/2022 19:24

'Buy the rumour sell the news' springs to mind.

[domesday2] 28/7/2022 18:22

Good movement up over last few weeks suggesting the results coming next week should be good and previous post is right.

[lammylover] 06/5/2022 10:08

Great buying opportunity - 18% growth in last quarter, cash rich, dividend payer.
Only problem here is the NASDAQ tech sell off - yesterday SPT opened up 2% higher to around 242p, before slumping with the NASDAQ 4.5% selloff, such that SPT closed down 2.5%. I'm hoping there will be a bounce back at some point, as clearly SPT is undervalued and surely continued good results, must be picked up soon by more of the fund managers?

[uhound] 06/5/2022 08:13

But, no interest in the stock.

[deanowls] 06/5/2022 07:37

Great update today.

[km18] 11/3/2022 12:49

..from last year...

Company overview:
Spirent communications is a global leader and innovator in test and assurance for the technology industry. The company provides testing solutions to ensure providers of mobile networks, cloud solutions, cybersecurity and connected devises are meeting promises they have made to their customers. Company operates in 49 countries through 1400 employees, with biggest revenue coming from the Americas. To meet the growing portfolio of services provided, Spirent is expanding the breath of abilities of its tests, offering the most innovative solutions across all sectors. To achieve that SPT is continuously investing in R&D, with high levels of CapEx and several acquisitions over the past 10 years. The rich history going even through the dotcom bubble and potential coming from the early stages of 5G wave make the stock very attractive. Main business is the networks and security division, generating 60% of the revenue and exuding reputation with clients like Sprint, Ericsson and AT&T.
The continuous technological advancement of its clients, meant that Spirent was performing very well even in 2020. As a matter in fact, the company has seen growth in its top line and net income for the past 5 years. The acquisitions have generated goodwill, currently at 24% of total assets, but is well balanced by good operating performance and positive outlook. Interim results show 14% growth in orders and 9% in revenue. Company is enjoying  good progress in all its projects and a “strong financial platform for busier H2”. The nature of the revenues is generating better gross margins than peers and ROCE stands at 23%. There are good news with regards to visibility, as SPT is securing more multi-years contracts, meaning these figures could improve further. Strong trading with reported profit before tax of $34.8m -12% growth on adjusted basis, created the opportunity for a 10% increase in the interim dividend.

Projects:
Spirent has acquired octoScope Inc in March, making the company a leader in Wi-fi testing

Short analysis (Interim):

Cash for the interim went down by 36%, due to dividends, acquisition of $51m
CA/CL =  1.96
Cash ratio = 1
Interest coverage (annual for 2020)= 200
P/S TTM = 4.15 , which is higher than the industry average
BV ps = 72.4 , growing at 1.46%
Operating profit was $44.7m, up by 13% compared to H1 2020
Gross profit Margin = 72%, which is line with H1 2020...

...from WealthOracleAM

[disc0dave45] 24/1/2022 13:54

Other companies have upgraded earnings recently and still fallen back, it's just the market correcting itself atm and it's not stock specific IMO.

[steeplejack] 24/1/2022 09:54

The fact that Spirent can't hold on to the recent gains post the excellent update is a very bad sign for equity markets in general.There's a dash to cash.Forget the comforting explanation that there is sector rotation,money is leaving equities probably exacerbated by cryptocurrency margin calls.Nasty scenario especially with the political scene in the Ukraine and Taiwan.

[disc0dave45] 20/1/2022 09:56

Seems positive at the moment, let's hope 2022 gets it back to 300.

[steeplejack] 20/1/2022 08:09

I wonder what the algorithms will make of that bullish update.

[steeplejack] 14/1/2022 16:15

Unfortunately a lot of good quality stocks are down 20% in the last two weeks from Dechra to Croda.Its not specific.