discoverIE Group (LON:DSCV) Releases Earnings Results

discoverIE Group (LON:DSCV) released its quarterly earnings data on Wednesday. The company reported GBX 41.30 earnings per share for the quarter, Digital Look Earnings reports. discoverIE Group had a net margin of 6.05% and a return on equity of 8.34%. The business had revenue of £443.30 million for the quarter.

Here are the key takeaways from discoverIE Group’s conference call:

• Trading momentum improved through the year, with Q4 organic orders up 14% and sales up 5%, helping the company exit the year strongly and return to organic growth across the business.
• Adjusted operating profit rose 1% and adjusted EPS increased 4%, while the adjusted operating margin held relatively steady at 13.8% despite higher investment in growth.
• Cash generation remained very strong, with 92% free cash flow conversion, and working capital as a percentage of sales improved to 16.6%, supporting self-funded growth and acquisitions.
• The company completed or announced three acquisitions focused on higher-growth, higher-margin markets, particularly defense and aerospace, and expects the deals to be accretive to margins over time.
• Outlook and order momentum remain encouraging: Q1 trading started well, orders are still running ahead of sales, and management said the business is in good shape for the year ahead with a strong design-win and acquisition pipeline.

discoverIE Group Price Performance

LON DSCV opened at GBX 770 on Wednesday. The company has a 50 day simple moving average of GBX 637.55 and a 200-day simple moving average of GBX 617.01. The company has a debt-to-equity ratio of 83.72, a current ratio of 1.48 and a quick ratio of 0.96. The firm has a market capitalization of £747.83 million, a price-to-earnings ratio of 29.28 and a beta of 1.19. discoverIE Group has a 52-week low of GBX 505 and a 52-week high of GBX 800.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on DSCV shares. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a GBX 870 target price on shares of discoverIE Group in a research note on Monday, April 20th. Jefferies Financial Group reissued a “hold” rating and set a GBX 685 target price on shares of discoverIE Group in a research note on Friday, April 17th. Shore Capital Group restated a “buy” rating on shares of discoverIE Group in a research report on Friday, April 17th. Berenberg Bank restated a “buy” rating and set a GBX 950 price objective on shares of discoverIE Group in a research report on Thursday, April 23rd. Finally, Stifel Nicolaus restated a “buy” rating and set a GBX 1,000 price objective on shares of discoverIE Group in a research report on Friday, April 17th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 875.83.

discoverIE Group Company Profile

discoverIE Group plc is an international group of businesses that design and manufacture innovative electronic components for industrial use. The Group provides application-specific components to original equipment manufacturers (“OEMs”) internationally, with a focus on key markets driven by structural growth and increasing electronic content, namely renewable energy, medical, transportation, security, and industrial & connectivity.

The Group employs c.4,500 people across 20 countries. Its principal operating units are located in Continental Europe, the UK, China, Sri Lanka, India, Thailand, Mexico and the USA.