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Investing.com -- Bodycote (LON:BOY) saw its shares soar roughly 13% in London on Wednesday after the thermal processing services provider announced an additional £30 million buyback and maintained its full-year outlook.
The boost brings the total allocation to £120 million.
The company reiterated that the full-year performance remains on track and in line with market expectations. Management continues to expect a second-half weighting, supported by the ongoing recovery in aerospace markets and recent contract wins.
For the first half of the year, Bodycote reported sales of £369 million, with EBITA at £55.1 million and an operating margin of 14.9%.
Headline earnings per share (EPS) stood at 21.3p.
Net debt rose to £112.5 million, reflecting the impact of the share buyback and dividend payments.
RBC analysts viewed the results as broadly positive and consistent with guidance. “We continue to see Bodycote as having an attractive end market mix, with further earnings growth potential from self-help,” the team led by Mark Fielding wrote.
They reiterated an Outperform rating on the stock, with a price target of 650p.
While the shares have recovered from April lows, they remain 13% below the year-to-date high, leaving room for re-rating if the company delivers in the second half.