JB Hi-Fi (ASX:JBH) fails to provide earnings guidance; shares fall

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Highlights:

  • JB Hi-Fi released its FY22 third quarter sales report today, stating strong sales growth. 
  • The company expects the strong consumer demands to follow in the fourth quarter of FY22. 
  • Yet, the company is uncertain about its own expected earnings in FY22. 

The shares of JB Hi-Fi Limited (ASX:JBH) were spotted trading 3.312% lower at AU$50.49 per share at 10:51 AM AEST on the ASX today (4 May). Approximately 196,000 shares of JB Hi-Fi were traded till now after the stock market opened for trading on Wednesday morning. 

The ASX-listed retailer of home consumer products has shared its sales update for the period starting from 1 January 2022- to 31 March 2022 (Q3 FY22). 

The share price of JB Hi-Fi has gained approximately by 10% on the ASX over the past 12 months. On the other hand, JB Hi-Fi’s year-to-date share price also gained over 3% at 10:51 AM AEST on the ASX today (4 May). 

Details of JB Hi-Fi’s sales report for Q3 FY22: 

The board of the company has stated that JB Hi-Fi continued to experience rising customer demands in Q3 FY22, leading to a strong sales growth in the given period. Such kind of sales momentum has been continuing till now, even in Q4 FY22 as well. 

In Q3 FY22, the JB Hi-Fi Australia reported a total sales growth of 11.9%, and JB Hi-Fi New Zealand reported a total sales growth of 4.8%. Meanwhile, The Good Guys reported a total sales growth of 5.5% in the given period.

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Although, JB Hi-Fi Group believes that it will continue to experience the strong sales momentum during the rest of the FY22, it is also sceptical about the operational disruptions that may take place due to COVID-19.

The board of JB Hi-Fi believes that the end of the financial year is a crucial trading period for the company. Therefore, the company is uncertain about any type of operational disruption or disruption in stock availability that could occur due to COVID-19 or any other local or global crisis.

As a result, the company is not yet ready to lay down its FY22 sales and earnings guidance for its shareholders.

Therefore, the absence of an earnings guidance for FY22 backed up by uncertainties could be the primary reason behind the company trading in red today.

Read more: JB Hi-Fi (ASX:JBH) posts sales update for FY22 third quarter, shares surge

About JB Hi-Fi 

JB Hi-Fi Limited is an ASX-listed consumer sector company as the company is a retailer of home consumer products. The company is primarily involved in the online and offline sale of a wide range of home products. It specialises in the selling of electronics products, mobile devices, games, consoles, music systems and so on. The company is segmented into three parts- JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys. JB Hi-Fi is also popularly known for offering information technology consulting services to its clients through its consulting unit- JB Hi-Fi Solutions. The company currently holds a market capitalisation of AU$5.71 billion. 

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