Ashtead’s (LON:AHT) share price has fallen into the red in today’s session, even as the company posted a rise in revenue and profits for the first quarter of its financial year. The rental equipment group further pointed out that it remained confident over the medium term.
As of 09:57 BST, Ashtead’s share price had given up 2.32 percent to 2,234.00p, underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.22 percent lower at 7,220.01 points. The group’s shares have given up about two percent of their value over the past year, as compared with less than one-percent fall in the Footsie.
Ashtead posts Q1 results
Ashtead announced in a statement this morning that its revenue had climbed 17 percent in the three months ended July 31, with rental revenue up 16 percent. The group’s operating profit meanwhile rose to £358 million during the reported period, up from £305 million a year ago.
“The Group delivered a strong quarter with rental revenue increasing 16 percent and underlying pre-tax profit increasing nine percent, excluding the impact of IFRS 16, both at constant exchange rates,” the company’s chief executive Brendan Horgan commented in the statement, adding that Ashtead’s North American end markets remained strong.
“The results appear to have ticked all the boxes and not raised any major concerns,” Oanda analyst Craig Erlam commented, as quoted by Reuters. “Expectations were high heading into the event though, so we may just be seeing a little profit taking on the results.”
Analysts on FTSE 100 group
The 17 analysts offering 12-month targets for the Ashtead share price for the Financial Times have a median target of 2,490.00p, with a high estimate of 2,800.00p and a low estimate of 1,950.00p. As of September 6, the consensus forecast amongst 20 polled investment analysts covering the blue-chip group has it that the company will outperform the market.