Ashtead’s pre-tax profit slides to £210 million in the fiscal third quarter
- Ashtead’s pre-tax profit slides to £210 million in the fiscal third quarter.
- The industrial equipment rental firm reports £1.08 billion of revenue.
- Ashtead expects a 4% year over year decline in its revenue in fiscal 2021.
Ashtead Group plc (LON: AHT) said on Tuesday that its profit before tax posted a decline in the fiscal third quarter. The company attributed the decline to the ongoing Coronavirus pandemic that weighed on its revenue in recent months. Ashtead, however, expressed confidence that its full-year results will be better than expected.
Ashtead shares slid roughly 1% in premarket trading on Tuesday, but regained the majority of its intraday loss later on. Including the price action, the stock is now exchanging hands at £39.63 per share versus a low of £13.35 per share in the last week of March 2020. Here’s what you need to know about the capital markets.
Ashtead reports £1.08 billion of revenue
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Ashtead said that its pre-tax profit in the third quarter printed at £210.1 million pounds. In the comparable quarter of last year, it had recorded a higher £225 million of pre-tax profit. The equipment-rental group valued its revenue in the quarter that concluded on 31st January at £1.08 billion versus the year-ago figure of £1.12 billion.
According to the British firm, its third-quarter performance was still applaudable, considering the COVID-19 crisis that has so far infected more than 4.1 million people in the United Kingdom and caused over 122 thousand deaths.
In separate news from the United Kingdom, Fresnillo said on Tuesday that its full-year profit noted a significant increase. The precious metals miner, however, remained cautious regarding its outlook for 2021.
Ashtead’s guidance for fiscal 2021
Ashtead further added on Tuesday that it now expects a 4% year over year decline in its revenue this year. In its previous guidance, it had estimated up to a 7% decline in its revenue in fiscal 2021. In comparison, the industrial equipment rental company had registered a 10% decline in its pre-tax profit in the prior quarter (Q2), as per the report published in December.
In the nine months that concluded on 31st January, the London-based company made £716.3 million of pre-tax profit – a decline from £885.2 million in the same period last year. Nine-month revenue, on the other hand, saw a decline from £3.57 billion last year to £3.37 billion.
Ashtead performed largely upbeat in the stock market last year with an annual gain of close to 40%. At the time of writing, it is valued at £17.83 billion and has a price to earnings ratio of 28.84.