Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Profit is racing higher for Eagers (ASX:APE), will shares rise?

The Eagers Automotive Ltd (ASX: APE) share price will be on watch today after revealing its profit is racing higher.

What was in Eagers’ update?

The car dealership business said it expects to achieve a record underlying operating profit before tax from continuing operations for the three months to 31 March 2021 of approximately $98 million.

On a statutory basis, the net profit before tax from continuing operations for the quarter is expected to be $105 million.

Why is the company making so much profit?

Eagers explained that unusually strong market dynamics, where demand is outstripping supply, combined with the ongoing benefits of its strategy of reducing costs, has helped this result.

Anything else?

The above numbers don’t include the announced sale of its Daimler Truck Operations and Milperra property for $108 million. The transaction is on track for completion in the first half of 2021.

This sale will be an important step in simplifying its business, delivering an estimated profit before tax of $32 million to $36 million, subject to adjustments.

Summary thoughts

Eagers is doing really well in the current environment. But it’s very hard to say how long this will continue, particularly with government stimulus ending and the vaccine rollout being delayed.

It’s in a strong market position and generating good growth. But I don’t know what is a good share price to buy Eagers is with different potential outcomes.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content