Finning International (TSE:FTT) Issues Earnings Results

Finning International (TSE:FTT) posted its earnings results on Tuesday. The company reported C$1.20 earnings per share for the quarter, FiscalAI reports. Finning International had a net margin of 4.93% and a return on equity of 19.22%. The business had revenue of C$3.04 billion for the quarter.

Here are the key takeaways from Finning International’s conference call:

• Q3 revenue rose 7% year over year to CAD 3.0 billion for a second consecutive quarter above that level; EPS increased 3% to CAD 1.20, with share repurchases contributing to the gain.
• Equipment backlog reached a record CAD 4.1 billion, up 42% year over year, as order intake outpaced deliveries across mining, power and energy, and construction. Management views the growing installed base as a source of future product-support revenue.
• Product-support revenue grew 7% for its tenth consecutive quarterly increase, led by 12% growth in Canada; rental revenue rose 27%. Finning also reported increased rebuild activity, particularly in Canadian mining.
• EBIT margin fell 50 basis points year over year to 8%, with lower product-support margins and higher costs to support growth weighing on results. Management said roughly two-thirds of the Canadian product-support margin decline reflected mix, with the remainder including temporary factors such as tariffs and the ramp-up of new technicians.
• Finning added a major Canadian data-center backup-power order to backlog and is pursuing additional prime and bridging-power opportunities. Management described data-center demand as added upside rather than a requirement for its earnings growth, while noting that project timing and scale remain uncertain.

Finning International Stock Down 6.4%

Shares of TSE:FTT opened at C$89.08 on Wednesday. Finning International has a 52 week low of C$70.89 and a 52 week high of C$115.60. The company has a debt-to-equity ratio of 86.86, a quick ratio of 0.59 and a current ratio of 1.47. The company’s fifty day moving average is C$99.13 and its 200-day moving average is C$95.93. The company has a market capitalization of C$11.59 billion, a PE ratio of 21.26, a P/E/G ratio of 0.56 and a beta of 0.23.

Analyst Upgrades and Downgrades

A number of brokerages have commented on FTT. National Bank Financial raised their price target on shares of Finning International from C$115.00 to C$118.00 and gave the stock an “outperform” rating in a research note on Friday, August 7th. BMO Capital Markets upped their price objective on Finning International from C$118.00 to C$122.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. Royal Bank Of Canada set a C$129.00 price objective on Finning International and gave the company an “outperform” rating in a research note on Tuesday, November 3rd. Canadian Imperial Bank of Commerce dropped their target price on Finning International from C$122.00 to C$120.00 in a report on Thursday, October 29th. Finally, Stifel Nicolaus set a C$127.00 target price on Finning International and gave the stock a “buy” rating in a report on Wednesday, September 30th. One research analyst has rated the stock with a Strong Buy rating and eight have given a Buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Buy” and an average target price of C$117.80.

Finning International Company Profile

Finning is the world’s largest Caterpillar dealer. Headquartered in Surrey, British Columbia, we sell and rent Caterpillar equipment and provide parts, service and performance solutions in Western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland. Since 1933, we have delivered unrivalled customer service and are committed to solving our customers’ toughest challenges.