Why shares of Megaport, James Hardie are witnessing an upswing today

Summary

  • Shares of Megaport and James Hardie soared in intra-day trade on Tuesday after both companies announced robust earnings.
  • While the Megaport share price rose 3.8%, the stock of building materials company Hardie jumped 5.8%.
  • Megaport has also announced the acquisition of an AI-powered multicloud and edge application orchestration company InnovoEdge.

Shares of Megaport Ltd (ASX:MP1) and James Hardie Industries plc (ASX:JHX) soared in intra-day trade on Tuesday after both companies announced robust earnings.

While the share price of Network as a Service (NaaS) provider Megaport rose 3.8%, the stock of building materials company Jamie Hardie jumped 5.8%.

Here we will discuss how Megaport and James Hardie performed in FY2021 and Q1FY22, respectively.

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Source: © Robynmac    | Megapixl.com

Megaport Ltd results FY2021

A prominent Network as a Service (NaaS) provider, Megaport reported a 35% increase in revenue to AU$78.3 million. The monthly recurring revenue (MRR) rose 32% to AU$7.5 million. The strong earnings were due to expansion of company’s data centre footprint, customer and ports growth, strong demand for Megaport Cloud Router. The company also reported a launch of Megaport Virtual Edge.

                       

ASX gets Earnings Boost; ends higher

 

The company became earnings before interest, tax, depreciation and amortisation (EBITDA) break-even in June. Even as the company reported an AU $55 million loss for the period, it had a cash balance of AU$136.3 million at the end of the year.

What did Megaport’s management say?

Commenting on the results, Megaport’s Chief Executive Officer, Vincent English, said, “Our investment in innovation and products supported big growth in Fiscal Year 2021. Megaport Cloud Router, our virtual routing service that creates cloud-to-cloud connections on demand, grew 64% in the period.”

Acquisition of AI-powered InnovoEdge was also announced by Megaport.

James Hardie Industries plc results Q1FY2022

James Hardie reported strong sales growth across its North American Fiber Cement, Europe Building Products, and Asia Pacific Fiber Cement segments. As a result, the company’s sales were up 35% to US$843.3 million in FY2021 compared to the corresponding period of last year.

The adjusted earnings before interest and tax (EBIT) rose 45% to US$180.5 million in FY2021. The net income of the company also grew by 50% on the prior corresponding period. Megaport has upgraded its full-year net income guidance.

Source: ©Miflippo  | Megapixl.com

Commenting on the results, James Hardie’s CEO, Jack Truong, said: “In our investor day at the end of May, we described our three critical initiatives for fiscal year 2022 through fiscal year 2024: (1) market directly to homeowners to accelerate demand creation, (2) penetrate and drive profitable growth in existing and new segments and (3) commercialize global innovations by expanding into new categories.”

James Hardie’s outlook

The company expects net income in FY2022 in the range of US$550 million to US$590 million, a rise of 20% to 29% on FY 2021’s adjusted net income of US$458 million.

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