From the analysts (not sure if I am allowed to quote who from)
Transfield Services Final Result Review ���� Reports Solid Result TSE has reported NPAT of $93m. Adjusted for amortisation of intangibles NPAT was $123.6m, an increase of 17%. EPS (adj basis) was 34.5c, a decline of 3.3%. The final dividend was 7.25c, making 12c for the year. The dividend was higher than expectations, other metrics were in line. The company guided to flat NPAT in 2010. There are modest increments to our earnings forecasts. ���� Divisional Performance The Services business grew EBITA by 9%. The bulk of the increment came from associate earnings in N America, which doubled. The wholly owned operations in Australia, NZ and the US were effectively flat on pcp. The Emerging Markets business did quite well. ���� Balance Sheet Gearing ended the year at 50%, which was above our expectations. The group took $48m of charges direct to equity, which accounted for the bulk of the difference. ���� Valuation We value TSE on a dcf basis. With gearing being higher than we had forecast our WACC falls to 11.1%. This generates a value of $3.50-3.75, an increase of 8%. We set our share price target equal to our valuation. We retain a Neutral rating.
TSE Price at posting:
$3.62 Sentiment: Hold Disclosure: Held
