Austal Limited (ASX: ASB) had come forward and made an announcement with regards to the revenue guidance for FY 2019 with the help of press release. As per the press release dated February 4, 2019, the company had increased the revenue guidance for FY 2019. Earlier, the company expected the revenues of FY 2019 to be between $1.3-$1.4 billion. After the H1 FY 2019 accounts’ draft preparation, which also includes the updated forecasts from the United States of America, Austral Limited stated that now there are expectations that the company would be able to garner around $1.9 billion in the revenues in FY 2019 (on the assumption that USD/AUD exchange rate would be at present level). The release also depicted some of the reasons, as a result of which, the company expects higher revenues from the earlier projections. The release issued by Austal Limited also contains the reasons which have led to the rise in the revenue guidance for FY 2019.
The higher number of LCS (or Littoral Combat Ships) in the United States of America (2 in September 2018 as well as 2 in December 2018) has been leading to higher than anticipated procurement levels in FY 2019, better-than-anticipated progress with regards to previously awarded LCS ships’ construction, increased support as well as sustainment revenue growth with respect to the contracts which were recently announced in United States of America, earlier-than-anticipated EPF 13 as well as 14 long lead material contracts’ receipt, translation of USD revenues in the United States of America, Philippines as well as Vietnam into Australian Dollar at the lower USD/AUD exchange rate are some of the reasons. However, the release also highlighted other reasons behind the rise in the anticipated revenues like speedy construction with regards to the commercial vessel in the Australia post securing additional leased shipbuilding facilities in the Western Australia, higher volume with respect to Vietnam after new shipyard’s completion in the CY2018 end and receipt of contract for 94 metre ferry as well as other small changes.
Not so long ago, Austal Limited had made an announcement related to new appointment by the issuance of press release. The issued release stated that the company had placed Mr. Chris Indermaur on the Board of Directors and has been designated as Non-executive Director.
Let us now see how Austal Limited has been performing today and how is had performed in the past. At the time of writing, Austal Limited is trading at A$2.150 per share which implies the rise of A$0.150 per share or 7.5%. The market capitalisation of Austal Limited stood at $703.99 million. As per Australian Securities Exchange or ASX, the annual dividend yield of Austal Limited stood at 2.5%. Talking about the past performance, the stock of Austal Limited had delivered the return of 18.69% in the span of previous 6 months while in the time frame of previous 3 months, it had given the return of 9.89%.
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