Finning International (TSE:FTT) Announces Earnings Results

Finning International (TSE:FTT) announced its quarterly 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 company 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 8.8%

Shares of Finning International stock traded down C$8.36 on Tuesday, hitting C$86.83. 211,152 shares of the company’s stock traded hands, compared to its average volume of 453,280. Finning International has a 52-week low of C$70.89 and a 52-week high of C$115.60. The company has a quick ratio of 0.59, a current ratio of 1.47 and a debt-to-equity ratio of 86.86. The stock has a market cap of C$11.30 billion, a P/E ratio of 20.72, a PEG ratio of 0.56 and a beta of 0.23. The firm’s 50-day moving average is C$99.16 and its 200 day moving average is C$95.91.

Analysts Set New Price Targets

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