Just Eat share price jumps as group delivers ‘strong start’ to year

Company’s first-quarter orders and revenue rise

Just Eat share price jumps as group delivers ‘strong start’ to year

Shares in Just Eat (LON:JE) have jumped in London in today’s session as the company updated investors on its first-quarter performance, delivering a rise in orders and revenue. The results are a boost for the blue-chip group which earlier this year revealed that it had made a pre-tax loss  in 2017 due to a £180-million impairment on its business in Australia and New Zealand.

As of 10:46 BST, Just Eat’s share price had gained 3.20 percent to 798.60p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.27 percent higher at 7,529.32 points. The group’s shares have added just under 39 percent to their value over the past year, as compared with a 4.6-percent gain in the Footsie.

JE’s revenue and orders rise

Just Eat revealed in a statement this morning that its revenue had jumped 49 percent to £177.4 million in the three months to March 31. The group’s orders during the reported period meanwhile came in 32 percent higher at 51.6 million, with the company enjoying a 29-percent rise in orders at home benefiting from 1.4 million orders from Hungryhouse, following the completion of the acquisition on January 31, as well as well as the inclusion of part of the Easter holiday weekend. International orders meanwhile jumped 46 percent, boosted by continued triple digit order growth in Canada and strong performances in Italy and Spain, partly offset by softness in Australia.

“Just Eat has had a strong start to the year,” Just Eat’s CEO Peter Plumb commented in the statement. Going forward, the company reiterated its full year guidance of revenue of between £660 and £700 million and uEBITDA of between £165 and £185 million.

Analysts weigh in on results

“Just Eat reported a very strong Q1 trading update which, in our view, makes the FY revenue guidance of £660m-700m look too conservative, even at this stage,” Liberum pointed out, as quoted by Proactive Investors. The analysts left their rating on the FTSE 100 group at ‘buy’.

As of 11:07 BST, Tuesday, 01 May, Just Eat PLC share price is 800.60p.

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