Bell Potter

CPU has delivered a disappointing 1H17 result, with the lowest 1H Management EBITDA or NPAT result in five years, and with the EBITDA margin down 1.7% versus PCP. This is a disappointing outcome as the market expectations on this result are quite high given recent share price performance. The company also benefited from a cost out program underway, and from one (and part another) US Interest rate hike. | Outlook: “At the November 16 AGM, we expected Management EPS to be slightly up on FY16 in constant currency. With increased confidence, we now expect Management EPS for FY17 to be between 56-58 cents in constant currency (FY16 55.09). Assumptions for 2H17: Equity markets remain at current levels, interest rate markets perform in line with current market expectations and that FY17 corporate actions revenue is similar to FY16.”


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