First-half results from Autonomy are a lesson in expectation management, with record revenues and profits still sparking an 11 per cent share price slump, to 1,602p, and taking the decline to 20 per cent in the last month alone.
Such a reaction may seem odd given the 'gentle recovery' the company sees, with 'Power' and OEM markets in particularly good nick. Revenues rose 28 per cent to a record $415m (£272m), including 14 per cent organic growth and pre-tax profit of $182m was also a record thanks to average selling prices for its meaning based technologies rising from $722,000 to $876,000 year-on-year.
However, the 7 per cent rise in second quarter adjusted EPS to 28 cents was lower than analysts had expected, largely because of the $766m-worth of interest-bearing loan notes issued in March, and Panmure Gordon has trimmed EPS estimates 5 per cent to 119.4¢ for the full year. Still, that represents over 30 per cent EPS growth year on year.
Perhaps the most vital piece of progress is on the cash front, a big worry in the past. Debtors days fell to 82 from 88 at the end of December, while cash flow from operations rose 64 per cent to $191m.
AUTONOMY (AU.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,602p | MARKET VALUE: | £3.9bn | |
| TOUCH: | 1,602-1,605p | 12-MONTH HIGH: | 2,012p | LOW:1,161p |
| DIVIDEND YIELD: | na | PE RATIO: | 28 | |
| NET ASSET VALUE: | 792¢* | NET CASH: | $162m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 325 | 121 | 36.0 | nil |
| 2010 | 415 | 136 | 42.0 | nil |
| % change | +28 | +12 | +17 | - |
*Includes intangibles assets of $176bn, or 730¢ per share £1=$1.53 | ||||
