Latest guidance stories: Worley Limited (ASX:WOR) & SEEK Limited (ASX:SEK)

Summary

  • An inside viewpoint on how a business is faring and is likely to develop in the near term can potentially trigger a share price rerating.
  • Worley Limited recently confirmed that it remains on track for a better result in the second half compared to the first half of 2020-21.
  • SEEK Limited upgraded its guidance owing to improved operating conditions

Investors are especially keen to become more educated about short-term results versus long-term initiatives in today’s sinusoidal market. Guidance or forward earnings guidance (which was once called the “whisper number”) is perhaps one of the most common report used by investors and analysts to adjust their expectations for a company's share price.

Copyright © 2021 Kalkine Media Pty Ltd

Worley Limited (ASX:WOR)

Australia-based industrial engineering solutions company, Worley remains in line with the guidance provided in February 2021. Having said so, it is on track for an improved H2 FY21 performance compared to H1 FY21.

The Company continues to deliver on its operational savings program. The target was increased to A$350 million, to be delivered by 30 June 2022.

Worley’s diversification is likely to continue as different sectors and regions recover. The Company’s 12- month factored sales pipeline is increasing which includes the acceleration of sustainability opportunities.

Notably, Worley expects an improved EBITA in H2 FY21 compared to H1 FY21- thanks to project awards and the impact of cost reductions.

Worley is also witnessing sustainability opportunities hasten across all sectors and remains well positioned to capture these opportunities.

MUST READ: Why ASX 200 Listed Worley (ASX:WOR) Could Be On Investors’ Radar Today

Mid-day on 4 May 2021, WOR traded up by over 3% at A$10.9 on the ASX.

Copyright © 2021 Kalkine Media Pty Ltd

SEEK Limited (ASX:SEK)

Australia's top employment marketplace, SEEK Limited has determined to pay a dividend of 20 cents on 24 May 2021. The Company is operating well within its original pre-existing Borrower Group covenant limits.

Results for the nine months to 31 March 2021 as well as the outlook for the remainder of the year are ahead of the Company’s expectations. The revenue outperformance is driven primarily by SEEK ANZ (primarily SMEs) and SEEK Asia. Notably, SEEK ANZ is leveraging from the record high levels of SME hiring activity as well as the escalating use of the Company’s depth products.

INTERESTING READ: Here’s why ASX 200 listed SEEK Limited tumbled 8% today

In FY21, the Company expects-

  • Revenue to be in the order of A$1,590 million.
  • EBITDA to be in the order of A$480 million.
  • SEEK Investments ESV losses to be in the order of A$50 million.
  • Reported NPAT to be in the order of A$140 million.

Mid-day on 4 May 2021, SEK traded up by over 3% at A$31.9 on the ASX.

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